Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698940528333.pdf (South Africa)
Tuesday, 8 May 2018] 1 No 56—2018] FIFTH SESSION, FIFTH PARLIAMENT PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS TUESDAY, 8 MAY 2018 TABLE OF CONTENTS TABLINGS National Assembly and National Council of Provinces 1.

Minister of Home Affairs ..................................................................... 2 National Council of Provinces 1.
Chairperson ........................................................................................... 2 COMMITTEE REPORTS National Assembly Science and Technology .......................................................................... 2 1.

2.

Home Affairs ...................................................................................... 32 Economic Development ..................................................................... 34 3.
Justice and Correctional Services ....................................................... 76 4.

National Council of Provinces 1.

2.

3.


Petitions and Executive Undertakings .............................................. 145 Petitions and Executive Undertakings .............................................. 182 Economic and Business Development ............................................. 195 ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 2 [Tuesday, 8 May 2018 TABLINGS National Assembly and National Council of Provinces 1.
The Minister of Home Affairs (a) Agreement between the Government of the Republic of South Africa and the Government of the Republic of Uganda on Visa Exemption for Holders of Diplomatic and Official Passports, tabled in terms of section 231(3) of the Constitution, 1996.
(b) Agreement between the Government of the Republic of South Africa and the Government of the Republic of Liberia regarding the Waiver of Visa Requirements for Holders of Diplomatic and Official Passports, tabled in terms of section 231(3) of the Constitution, 1996.

National Council of Provinces 1.


The Chairperson (a) NOTICE OF INTERVENTION ISSUED IN TERMS OF SECTION 100 (1)(b) OF THE CONSTITUTION, 1996: DEPARTMENT OF HEALTH: NORTH WEST PROVINCE Referred to the Select Committee on Social Services for consideration and report.

COMMITTEE REPORTS National Assembly 1.

Report of the Portfolio Committee on Science and Technology on Budget Vote 30: Science and Technology (2018/19), dated 8 May 2018.
The Portfolio Committee on Science and Technology, having considered Budget Vote 30: Science and Technology and the 2018/19 Annual Performance Plans of the Department of Science and Technology and its entities, reports as follows: ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 1.
Introduction 3 The Constitution of the Republic of South Africa, 1996 and the Rules of Parliament mandates the Portfolio Committee on Science and Technology (the Committee) to oversee the activities and performance of the Department of Science and Technology (the Department) and the entities that report to it.

Hence, the Committee annually reviews whether the Department and entities’ performance plans are aligned to national strategic objectives and the appropriated budget.
The entities that report to the Department are the National Advisory Council on Innovation (NACI), the Technology Innovation Agency (TIA), the South African National Space Agency (SANSA), the National Research Foundation (NRF), the Academy of Science of South Africa (ASSAf), the Council for Scientific and Industrial Research (CSIR) and the Human Sciences Research Council (HSRC).
The Department and its entities briefed the Committee on 17, 18, 19 and 25 April 2018, where they provided an overview of the strategic context within which they function, discussed priority performance indicators and their concomitant targets and the 2018/19 budget allocations.

2.

Strategic Overview of the Department of Science and Technology 2.1.
Policy mandate The 1996 White Paper on Science and Technology, which introduced the concept of the National System of Innovation (NSI), informs the Department’s mandate.

A coherent and well-co-ordinated NSI would help South Africa achieve its development priorities; hence, the Department supports the NSI by: • Co-ordinating the development of policies and strategies, which identify specific priority areas for the country where science, technology and innovation (STI)-related support is required.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 4 • • • • • • • [Tuesday, 8 May 2018 Creating systems and structures to co-ordinate the STI-related work of Government and agencies.

Developing measurement systems and undertaking analyses to create an evidence base for improving the performance of the NSI.

Optimising the governance of publicly funded STI institutions to support Government’s priority outcomes.

Funding research, development and innovation (RDI) infrastructure.
Funding human capital development at postgraduate level.

Unlocking STI resources through partnerships with international, continental and multilateral agencies.

Supporting the technological competitiveness of firms and industry sectors through focussed research and development (R&D) programmes.

2.2.
2.2.

Policy context The National Development Plan (NDP) characterises STI as crucial for development since countries that have effectively alleviated poverty by growing their economies, have done so by investing in and developing strong STI environments and capabilities.

Hence, the NDP states that South Africa’s NSI needs to be expanded as well as be more effective.
This requires that South Africa invest more in R&D, that the STI institutional arrangement must improve the link between innovation and the productive needs of industry, and that Government should collaborate with the private sector to raise the level of R&D in companies.

Furthermore, the NDP outlines three phases of innovation to create an inclusive and dynamic economy that is driven by knowledge.
The Department has translated these phases into STI implementable actions and its 2015-2020 Strategic Plan proposes the following: ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 5 • Phase One (2012-2017) – Use knowledge to increase economic efficiency The NSI, using what has been achieved to date, will expand research capacity by developing human capital and building institutions.
It will continue to support and help improve the productivity and capability of existing economic sectors, as well as support emerging economic sectors through technological innovation.

• Phase Two (2018-2023) – Use knowledge to enhance industrialisation The NSI will continue to accelerate the demographic transformation of the STI sector and use knowledge to enhance economic efficiency.

Government will increase R&D investment and commercialisation, and optimise the use of imported technology.
• Phase Three (2025-2030) – Knowledge-based economy This phase is characterised by a significant increase in the number of knowledge workers and high-technology industries that will boost exports and increase South Africa’s capacity to commercialise indigenous technologies.

Thereafter, the Department will strive to sustain and expand this progress.

These efforts all require a strong, co-ordinated, effective and coherent NSI.

2.3.
2.3.

2015-2020 Strategic outcome-oriented goals The Department’s 2015-2020 Strategic Plan states that the Department will direct its efforts and resources toward the following five strategic outcome- orientated goals: • Goal 1: Responsive, co-ordinated and efficient NSI – build on previous gains to create a responsive, co-ordinated and efficient NSI.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 6 • • • • [Tuesday, 8 May 2018 Goal 2: Increased knowledge generation – maintain and increase the relative contribution of South African researchers to global scientific output.

Goal 3: Human capital development – increase the number of high-level graduates and improve their representivity.

Goal 4: Using knowledge for economic development – derive a greater share of economic growth from R&D-based opportunities and partnerships.
Goal 5: Knowledge utilisation for inclusive development – accelerate inclusive development through scientific knowledge, evidence and appropriate technology.
To achieve the five strategic outcome-orientated goals, the Department has prioritised the following policy initiatives for the 2018/19 financial year: • Human Capital Development (HCD) – a model developed to quantify the skills and funding required to achieve the NDP target of 100 PhDs per million of the population will be presented to the Directors-General of the Economics Cluster.
Furthermore, recommendations from the “Research training environment in postgraduate engineering programmes” and the “Silent majority” studies will also be implemented.

• South African Open Science Policy – finalise the development of a draft Open Science Framework that will inform the formulation of this policy.
• White Paper on Science, Technology and Innovation – finalise the new STI White Paper, which sets the long term policy direction for the South African government to ensure a growing role for STI in a more prosperous and inclusive society.

• Science, Technology and Innovation Institutional Landscape (STIIL) Review – implement the STIIL Review Roadmap, which outlines how best to build on the existing institutional landscape to enhance the diversity of public research institutions.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 7 • • • Decadal Plan for STI aligned with the NDP – develop the next STI Decadal Plan (current plan is the Ten-Year Innovation Plan 2008-2018) that will set out the technology focus areas, initiatives and institutional arrangements, funding needs, implementation risks and monitoring and evaluation indicators and intervals over the 2019-2029 period.
Sovereign Innovation Fund – establish the Sovereign Innovation Fund, which is a joint funding instrument with National Treasury and the Department of Small Business Development to finance innovative ventures and small and medium enterprises in South Africa.

Strategy for the uptake of locally developed technologies – finalise a strategy to improve the uptake and deployment of South African-derived products and services in addressing service delivery challenges.

3.
3.

Budget 2018 The 2018 Budget directs spending to the most critical priorities; comprising education, social protection, and inclusive economic growth.

It also seeks to raise revenue so that the growth in public debt can be reined-in, and anticipates a steady increase in economic growth.
With regards to STI as an enabler for economic growth and the creation of a conducive environment for small business development, specific mention was made of the R2.1 billion fund (allocated over the medium-term) to benefit innovative small and medium enterprises during the early start-up phase.

A phase that is not well-supported by the private sector due to the risks involved.
This fund is being developed between the Departments of Science and Technology and Small Business Development and the National Treasury.

Additional constraints such as the lack of access to markets and the high cost of data are being addressed via efforts to reduce the cost of data and freeing up broadband spectrum, as well as designating a percentage of public procurement specifically for locally manufactured goods and services.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 8 [Tuesday, 8 May 2018 The Minister of Finance also made specific mention of building sectors where South Africa enjoys comparative advantage, for example, mining, manufacturing, and agriculture.

Sectors, among others, where R&D is being used extensively to revitalise and expand existing capacity and ability.
Furthermore, R200 billion has been earmarked for economic development, where R18.8 billion is allocated for industrialisation incentives over the medium-term of which an additional allocation of R3.3 billion is allocated for the Economic Competitiveness and Support Package (ECSP) to support growth and job creation in support of the Industrial Policy Action Plan.
The ECSP is key for the Department to continue with its Sector Innovation Funds that are being used for its initiatives in support of Government’s Nine-point plan.

4.
4.

Vote 30: Science and Technology (2018/19) Over the medium-term and in line with the NDP, the Department will use its budget allocation to produce new knowledge, use this knowledge to stimulate economic and social growth and development, develop human capacity, fund research and innovation, and fund the acquisition and provision of infrastructure.
The Department’s budget allocation has increased by R233.3 million from R7.6 billion in the 2017/18 financial year to R7.8 billion in the 2018/19 financial year.

This denotes, when adjusted for inflation, a real decrease of 2.3%.

The Department’s budget allocation is projected to increase to R8.2 billion in 2019/20 and R8.7 billion in 2020/21.
Over the medium-term, Cabinet has approved budget reductions of R186.1 million, which will be effected on spending on goods and services, and on the baseline budgets of entities.

In terms of economic classification, the apportionment of the Department’s 2018/19 budget allocation of R7.8 billion remains the same as in previous years and comprises Current payments of R603.3 million (7.8%), Transfers and subsidies of R7.2 billion (92%) and Payments for capital assets of R12.2 million (0.2%).
The Department’s 2018 APP states that as of February 2018, the vacancy rate was 12.4%, of which 3.5% was at a senior management level.

Budget cuts have meant that these vacancies cannot be filled.

Furthermore, the Department’s 2018 APP states that, due to constraints on the salaries budget, the vacancy rate will be capped at 20% for 2018/19 and 23% for 2019/20.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 9 During the Committee’s interaction with the Department, the Minister of Science and Technology (the Minister) stated that how Government funds STI needs urgent and heightened scrutiny, since due to the nature of scientific endeavour, having sustainable funding over the lifetime of STI initiatives is key to achieving the desired outcomes and impact.
Therefore, budget cuts within a period where funding has been committed, are detrimental to a successful outcome.

Furthermore, the Minister stated that an aggressive increase in RDI investment is needed for science and technology to fulfil a greater role in economic growth, to adequately transform the sector, and to increase South Africa’s global competitiveness.

4.1.
2018/19 Budget allocation per Programme The Department’s budget funds five major programmes, namely: • • • • • Programme 1 – Administration Programme 2 – Technology Innovation Programme 3 – International Co-operation and Resources Programme 4 – Research, Development and Support Programme 5 – Socio-economic Innovation Partnerships These programmes fulfil the Department’s mandate of realising the full potential of science and technology in social and economic development through the development of human resources, research and innovation.
The percentage budget allocation to the Programmes (Table 1) and sub- programmes remains virtually the same as in previous financial years.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 10 [Tuesday, 8 May 2018 Table 1: Budget summary of the Department of Science and Technology Programme 2017/18 2018/19 Nominal Real R’ million appropriation estimate change in change in Adjusted Expenditure percentage percentage (percentage of total budget) 1.

Administration 376.0 383.8 (4.9%) 2.


Technology Innovation 1 075.1 1 131.7 (14.5%) 3. International Co-operation and 2018/19 2018/19 (inflation- adjusted) 2.09 5.27 -3.24 -0.22 Resources 132.4 136.4 (1.8%) 3.04 -2.34 4.

Research, Development and Support 4 350.1 4 360.3 (56%) 0.23 -4.99 5.
Socio-Economic Innovation Partnerships Total 1 623.6 1 778.3 (22.8%) 9.52 3.81 7 557.2 7 790.5 3.1% -2.29% The budget allocation is aligned to the priorities of strengthening and expanding STI human capital development and ensuring that innovation and knowledge underpin the government’s growth strategy.

Hence, Programmes 2, 4 and 5, receives 93.3% of the Department’s total budget allocation.
Important to note within the performance indicators selected to appear in the 2018 Estimates of National Expenditure (ENE), is that over the medium- term, the numbers of postgraduate students supported and research awards granted remain stagnant.
Responding to previous recommendations from the Committee to ensure that performance indicators better reflect the work of the Department and to account for the effect of budget cuts; the Department have made changes to a range of its 2015-2020 Strategic Plan proxy indicators.

For the 2018/19 financial year, the Department has 23 strategic objectives, which have been translated into 43 performance indicators.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 11 4.1.1.
Programme 1: Administration Programme 1 provides strategic leadership, management and support services to the Department and has five sub-programmes.

These are Ministry, Management, Corporate Services, Governance and Office Accommodation.

The work of this Programme focuses on administration, and policy and planning.
Table 2: Budget summary of Programme 1: Administration Programme 2017/18 2018/19 Nominal Real R’million Adjusted Expenditure percentage percentage appropriation estimate change in change in Ministry Management Corporate Services Governance Office Accommodation TOTAL 4.5 115.9 242.5 8.3 4.8 376.0 2018/19 2018/19 (inflation- adjusted) 5.1 119.6 243.3 10.7 5.0 383.8 15.33 3.23 0.32 28.71 5.20 2.1 9.32 -2.15 -4.91 22.00 -0.28 -3.24 Programme 1’s R383.8 million allocation will mainly be spent on salaries (R174 million) and on Goods and services (R183.3 million).
R14.3 million is allocated to Transfers and subsidies to non-profit institutions.

Key initiatives that will continue in 2018/19 is the Business process mapping exercise, modernisation of the Information Technologies (IT) unit, processes to mitigate the effects imposed by the constraints on the salaries budget, and efforts to reconfigure the Directorate: Strategy and Planning to better serve the Department and the NSI.
To date, the administrative mechanisms implemented by Programme 1 have ensured unqualified or clean audits for the Department and its entities, as well as recognition from the Presidency as being one of the best managed ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 12 [Tuesday, 8 May 2018 national departments.

The intention to reposition and redefine the administrative function so that it continues to improve on the support provided to the Department and its entities remains.
a) Programme 1 Entity: National Advisory Council on Innovation (NACI) NACI aims to provide evidence-based advice to the Minister of Science and Technology and, through the Minister, Cabinet on STI matters.

To address the challenges facing the NSI, NACI adopted four new strategic outcome- oriented goals as the basis for its 2016-2021 Strategic Plan.

These in essence comprise building internal capacity, improving operations, and improving data analysis and advice.
Key outputs for 2018 include: • • • • • • • Three STI advice documents The State of STI Report Two NSI monitoring and evaluation reports Continued implementation of the National STI Information Portal Finalising the foresight exercise for the new STI White Paper and Decadal Plan Implement NACI’s Knowledge Management System The term of the current NACI Council ends July 2018; hence, the aim is to have the Institutional Review Report available at the same time NACI’s operations are administered by Programme 1.
The budget allocation for 2018/19 is R20 million (R19.5 million in 2017/18), which comprises R11 million for salaries and R9 million for goods and services.

NACI, in terms of fulfilling its mandate, continues to be hampered by being located within the Department and being inadequately resourced.
However, within its current structure and location, NACI will continue to strive to package its advice to the Minister and Cabinet in a manner that will allow the potential of innovation for socio-economic development to be more evident.

NACI ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 13 will also focus on increasing its staff capability and organisational capacity.

The term of the current NACI Council ends in July 2018 and an institutional review is being undertaken.
The results of the institutional review will be used to inform the focus and work of the new Council.

4.1.2.

Programme 2: Technology Innovation Programme 2 enables R&D in space science and technology, energy security, the bioeconomy, and in the areas of nanotechnology, robotics, photonics and indigenous knowledge systems (IKS), and promotes the realisation of commercial products, processes and services from these R&D initiatives.
In addition, through the implementation of enabling policies and interventions along the entire innovation value chain, promotes the protection and utilisation of intellectual property (IP), technology transfer and technology commercialisation.

Programme 2 has four sub-programmes and one specialised service delivery unit (SSDU).

These are Space Science, Hydrogen and Energy, Bio-innovation, Innovation Priorities and Instruments (IPI) and the National Intellectual Property Management Office (NIPMO).
Table 3: Budget summary of Programme 2: Technology Innovation 2017/18 2018/19 Nominal Real Adjusted Expenditure percentage percentage appropriation estimate change in change in Programme R’million Space Science Hydrogen and Energy Bio-innovation Innovation Priorities and Instruments National Intellectual Property Management Office 174.9 156.8 156.1 540.5 46.8 161.9 167.8 178.4 572.7 50.9 TOTAL 1 075.1 1 131.7 2018/19 2018/19 (inflation- adjusted) -12.27 1.45 8.35 0.44 2.97 -0.22 -7.45 7.03 14.31 5.96 8.64 5.3 ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 14 [Tuesday, 8 May 2018 Programme 2 receives R1.13 billion of the Department’s total allocation.
Approximately 89% (R1 billion) is allocated to Transfers and subsidies, where TIA and SANSA receive the largest allocations.

The IPI sub- programme continues to receive the largest share of Programme 2’s budget, that is 51% (R573 million).

The IPI sub-programme supports and strengthens the policy initiatives that aim to create and sustain an enabling environment for innovation, technology development and the commercialisation of products from publicly funded R&D.
The lowest allocation, approximately 4.5% (R50.9 million), goes to NIPMO.

The remaining funds are relatively equally distributed between the Space Science (R161.9 million), Hydrogen and Energy (R167.8 million), and Bio- innovation (R178.4 million) sub-programmes.

The largest allocation decrease is to the Space Science sub-programme and equals R13 million.

The remaining sub-programmes all receive above-inflation allocation increases.
a) Programme 2 Entity: Technology Innovation Agency (TIA) TIA aims to support, stimulate and intensify technological innovation to improve economic growth.

TIA is positioned as a development finance institution that provides “gap” funding for technology development projects (seen as high-risk investments; hence, there is a lack of commercial funding) with high social and economic impact.
Conversely, the level of the current budget imposes limits on TIA’s risk appetite and by extension the sectors in which it operates.

TIA’s goals are to; support commercialisation of technological innovations; increase access to infrastructure for technology development; and stimulate an agile and productive NSI.
The investment and/or support programmes that drive TIA’s work are grouped under the Innovation Funding and Pre Commercialisation Support initiative and the Innovation Enabling and Support initiative.

Key outputs for TIA include technology development funding that will enhance or develop technology-based companies that will also lead to job creation.
As well as, creating an enabling environment for technology innovation that will lead to job creation, increased company turnover and technology support funding for small and medium enterprises.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 15 TIA’s total 2018/19 budget is R536.6 million (R500 million in 2017/18), which comprises R420.3 million from the Department and R116.3 million from other funding sources (22% of total).
TIA plans to spend 35% (R189.7 million) of its budget on administration and the remaining 65% (R346.9 million) on project disbursements/investments.

The increased expenditure on administration from 30% to 35% is to allow for additional staff resources to enable TIA to achieve its medium-term growth targets.

TIA has shown that for every R1 million that it spends, it creates four direct jobs; and over the last four years, has created 2 000 direct jobs.
TIA’s financial sustainability remains a concern where an ideal budget for innovation project disbursements would be R1 billion.

Hence, TIA will in 2018/19 seek to gain greater access to the R15.8 billion allocated across Government for innovation, science and technology; apply to be included in the 11th Schedule of the Income Tax Act so that TIA can benefit from a tax exemption on its grants; and apply to retain surplus funds.
TIA is assessing its various industry support initiatives to determine how these could be scaled up, not only in terms of the numbers of enterprises receiving support, but also in terms of the nature and impact of the support given.

TIA is also planning to undertake a national marketing and awareness campaign to enhance its visibility across society and all relevant industry sectors.
b) Programme 2 Entity: South African National Space Agency (SANSA) SANSA aims to position “South Africa as an international hub for space solutions for the world of the future”.

To achieve this, SANSA’s five strategic goals are to address national challenges through space applications; lead high-impact R&D; develop human capital and ensure transformation; enhance the competitiveness of South Africa’s space industry; and develop global partnerships.
SANSA has since its inception been sub-optimally funded and the limitations that have resulted are: ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 16 • • • [Tuesday, 8 May 2018 SANSA’s inability to fully meet its mandate, especially with regards to global navigation satellite services (GNSS) and satellite telecommunications solutions and applications Limited support to the local space industry As an implementing agency, SANSA’s salary bill accounts for its major cost Key cost drivers remain the cost of access to earth observation satellites, maintaining data storage facilities, attracting and retaining high-end skills, and developing the earth observation satellite EO-Sat 1.
The Parliamentary grant allocation to SANSA from the Space Science sub- programme is R138 million (R131 million in 2017/18), it also receives R6.9 million as a ring-fenced grant (down from R132 million in 2017/18) and expects to receive R76.7 million from contract and other income.

Hence, SANSA’s total estimated revenue for 2018/19 is R222 million (R391 million in 2017/18).
The decline in the ring-fenced grant allocation is related to the funding for the development of EO-Sat 1 that has not yet been confirmed.

This is further reflected in the decline, from R120 million to R10 million, of the allocation to the Space Engineering programme.

Because this sector is dependent on highly specialised skills, which are also in short supply in South Africa, the salaries budget remains a key cost driver and will account for R124 million (56%) of SANSA’s total expenditure.
In essence, the baseline allocation to SANSA to fulfil its mandate is R138 million, its salary budget is R122 million, leaving SANSA with R14 million to establish, resource and run a national space programme.

The establishment of SANSA merged three highly technical organisations, all with high-end infrastructure to maintain and upgrade as needed.

It is this infrastructure from which SANSA generates it contract income.

In 2018/19, SANSA will only have R5 million for capital expenditure.
Only the allocation to the Earth Observation programme increases from R64 million to R67 million for the acquisition, distribution and storage of satellite imagery.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 17 Due to sub-optimal funding levels and the funding for the further development of EO-Sat 1 not yet confirmed; key risks for SANSA include: • • • • • • • Extended delays to the EO-Sat 1 programme, which requires R318 million in 2018/19 Inadequate support to the South African space industry Inability to develop the necessary human capacity.

Due to constrained finances, SANSA cannot employ more researchers.
It also can’t employ the students it trains.

Loss of credibility Loss of income Downgrade in services offered Inability to fulfil mandate SANSA is regarded globally, based on merit, as the preeminent space agency and the strategic leader in space issues, on the African continent.
Despite its dire financial circumstances, SANSA will continue to deliver on its mandate as best it can and will also be tabling a new Strategic Plan for 2018 – 2023 that seeks to ensure that South Africa participates in new opportunities within the space sector.

4.1.3.

Programme 3: International Co-operation and Resources Programme 3 supports South Africa’s foreign policy through science diplomacy.
Hence, it develops, promotes and manages international relationships, opportunities and science and technology agreements that both strengthen the NSI and enable an exchange of knowledge, capacity and resources between South Africa and its international partners, with a focus on supporting STI capacity building in Africa.

Programme 3 has three sub- programmes; namely, Multilateral Co-operation and Africa, International Resources and Overseas Bilateral Co-operation.
Programme 3 is allocated R136.4 million (R132.4 million in 2017/18), with R68.9 million allocated to Current payments and R67.5 million allocated to Transfers and subsidies.
The Transfers and subsidies allocation is further broken down into ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 18 [Tuesday, 8 May 2018 R14.9 million to the NRF who manages bilateral co-operation agreements on behalf of the Department, R43.1 million for International multilateral agreements and R9.4 million for African multilateral agreements.
The International Resources sub-programme receives R63 million (46%), the largest share of this Programme’s allocation, followed by Overseas Bilateral Co-operation receiving 31% and the remaining 23% allocated to Multilateral Co-operation and Africa.
Key outputs for Programme 3 include securing international investment for STI research and human capital development, securing access to international training programmes and STI infrastructure for South African students, facilitating funding for and supporting regional and continental STI initiatives, and occupying leadership positions and influencing decisions at intergovernmental STI fora.

Programme 3 needs a budget that will allow for strategic co-investment with international partners.
The Department has shown that for every R1 it invests, it can secure up to R10 from an international partner.

Bilateral and multilateral co-operation initiatives also require South Africa to fund its own costs under bilateral agreements and cover its membership in multilateral organisations.

Programme 3 receives a nominal increase in its 2018/19 allocation, but once adjusted for inflation, this represents a real decrease of 2.3%.

4.1.4.
4.1.4.

Programme 4: Research, Development and Support Programme 4 seeks to provide an enabling environment for research and knowledge production that promotes the strategic development of basic sciences and priority science areas through science promotion, human capital development and the provision of research infrastructure and relevant research support, in pursuit of South Africa’s transition to a knowledge economy.
Programme 4 has four sub-programmes; namely, Human Capital and Science Promotions, Science Missions, Basic Science and Infrastructure, and Astronomy.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 19 Table 4: Budget summary of Programme 4: Research, Development and Support Programme R’million 2017/18 2018/19 Nominal Real Adjusted Expenditure percentage percentage appropriation estimate change in change in Human Capital and Science Promotions 2 424.8 2 457.1 Science Missions Basic Science and Infrastructure Astronomy TOTAL 214.2 976.6 734.5 223.0 927.6 752.6 4 350.1 4 360.3 2018/19 2018/19 (inflation- adjusted) 1.33 4.07 -5.02 2.47 0.2 -3.95 -1.35 -9.97 -2.87 -4.99 The marginal increase in Programme 4’s budget, once adjusted for inflation, represents a real decrease of 5%, with the Basic Science and Infrastructure sub-programme being subjected to a R49 million decrease in its allocation.
Programme 4’s allocation is largely for Transfers and subsidies (R4.30 billion), the bulk of which is transferred to the NRF.

Budget cuts within Programme 4 have meant that the number of students who receive bursaries, the number of students who receive work preparation (interns), and the number of infrastructure grants awarded all had to be reduced.
a) Programme 4 Entity: National Research Foundation (NRF) The NRF promotes and supports research in all fields of science, and provides research funding and platforms through national research facilities and science engagement activities.

One of its key goals is to ensure that South Africa contributes at least one percent to global R&D output by 2020 and that this knowledge output benefits society.

The NRF’s total revenue for 2018/19 is projected to be R4.3 billion (R5 billion in 2017/18).
The total revenue consists of the Parliamentary grant of R905 million and contract income of R3.4 billion (R2.8 billion ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 20 [Tuesday, 8 May 2018 from the Department, which was R3.6 billion in 2017/18).

This represents a 20% decline in total revenue in real terms.
The NRF’s 2018 APP states that the continued decline in real terms of the Parliamentary grant poses significant risk to the sustainability of the NRF; and because 78% of its total budget is predetermined through contracts, the NRF does not possess the funding agility to respond to shifts in the NSI.

The NRF APP further states that, “The cost of delivering on the mandate of the NRF is significantly outpacing the growth of the Parliamentary grant allocation.
This includes, but is not limited to, inadequate reach and value of postgraduate student bursaries, which do not increase annually in accordance with the Consumer Price Index (CPI).

Similarly, the value of grants to researchers have not increased, and in some instances have been reduced.
In addition, maintenance, renewal and acquisition of necessary research infrastructure platforms and related equipment have been significantly compromised.” Currently, annual growth in expenditure stands at approximately 8%; whereas, the annual growth of the Parliamentary grant has approximately been 5.3%.

Therefore, the declining (in real terms) Parliamentary grant presents a specific risk to the National Research Facilities, which it largely funds.
Furthermore, the fluctuation and volatility of the rand negatively impacts the procurement of specialised imported materials and equipment.

The National Research Facilities are also unable to renew their research workforce or renew, replace or acquire necessary research infrastructure.

The lack of adequate resources has meant that the numbers of students and researchers that can be supported have had to be reduced; and no new calls for infrastructure grants will be issued.
Expenditure across the NRF’s programmes is projected to be 59% to the Research and Innovation Support and Advancement (RISA) business unit, 25% to the National Research Facilities: Astronomy, 11% to the National Research Facilities: Biodiversity, Environmental and Nuclear Sciences, 3% for Science Engagement, and 2% for Corporate.
Strategically, across its programmes, the NRF is focussed on achieving positive impact (rather than just increasing numbers) with the resources at its disposal, and believes that transformation of the STI sector requires deliberate, well considered interventions.
This requires a long-term commitment to the allocation of optimal, sustainable and relevant resources ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 21 since the transformation framework being developed by the NRF encompasses the students and researchers, the STI focus areas that it supports, as well as the equity needs of the NRF itself.
b) Programme 4 Entity: Academy of Science of South Africa (ASSAf) ASSAf promotes outstanding achievement in all fields of scientific enquiry, honours excellence, and provides evidence-based scientific advice to government and other stakeholders.
Key outputs include fostering collaborations among global science organisations, raising awareness of and increasing the quality of South Africa’s scholarly output, promoting young scientists and women for science activities, STI policy advice for government, and improving scientific writing for research publishing.

As such, ASSAf’s activities are structured within four programmes; namely, Governance and Administration, Scholarly Publishing, Liaison, and Science Advisory.
ASSAf’s 2018/19 income is projected to be R38.7 million, where R25.7 million is the baseline allocation from the Department who also allocates R9.1 million through various contracts.

ASSAf will raise the additional revenue from its publications, membership fees and other income.

Since ASSAf’s activities are labour-intensive and require highly skilled staff, compensation of employees remains a key cost driver, accounting for approximately 76% of total expenditure over the medium-term.
Sub-optimal funding, a small staff compliment and increased requirements imposed by ASSAf complying fully with the Public Finance Management Act (PFMA) remains a challenge.

Uncertainty with regards to PFMA- compliance has been hampering ASSAf’s operations since 2016 and will be addressed via amendments to the Science and Technology Laws Act, which will be tabled in Parliament during the third term of 2018.
It is also the considered view that ASSAf would benefit from having a deputy Chief Executive Officer and a permanently appointed President of Council to further its mandate.

ASSAf is also hampered by a lack of awareness of its capability, in that its membership comprises some of the best minds in South Africa, who voluntarily offer their time and expertise to generate ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 22 [Tuesday, 8 May 2018 evidence-based advice for policy makers.
Raising its profile and creating awareness of its stature is; therefore, of utmost importance.

ASSAf will continue its efforts to increase and diversify its membership, increase the access South African researchers have to scholarly journals, improve the quality of South African scholarly publications, grow the number of academies in the region and Africa, and provide evidence-based scientific advice, as well as ensuring that the advice is considered and used.

4.1.5.
4.1.5.

Programme 5: Socio-Economic Innovation Partnerships Programme 5 seeks to enhance the growth and development priorities of government through targeted STI interventions and the development of strategic partnerships with all levels of government, industry, research institutions and communities.
Programme 5 has four sub-programmes; namely, Sector Innovation and Green Economy, Innovation for Inclusive Development, Science and Technology Investment, and Technology Localisation, Beneficiation and Advanced Manufacturing.
Table 5: Budget summary of Programme 5: Socio-Economic Innovation Partnerships Programme R’million 2017/18 2018/19 Nominal Real Adjusted Expenditure percentage percentage appropriation estimate change in change in Sector Innovation and Green Economy Innovation for Inclusive Development Science and Technology Investment Technology Localisation, Beneficiation and Advanced Manufacturing TOTAL 984.0 356.6 25.3 257.8 1 623.6 2018/19 2018/19 (inflation- adjusted) 1 036.8 354.8 27.3 359.3 1 778.3 5.37 -0.50 8.11 39.4 9.5 -0.13 -5.69 2.48 32.13 3.81 ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 23 Programme 5 receives R1.8 billion of the Department’s total budget and allocates R1.7 billion to Transfers and subsidies.
These transfers comprise R563 million for Departmental agencies and accounts and R963 million for Public corporations and private enterprises.

The Sector Innovation and Green Economy sub-programme receives 58% (R1 billion) of the total allocation to establish high impact science research that would support the growth of environmental technologies and services in South Africa.
The Technology Localisation, Beneficiation and Advanced Manufacturing sub- programme receives 20% of the total allocation to identify and grow STI capabilities that will improve the competitiveness of existing industries and facilitate the development of new R&D-led industries.

This sub-programme receives a real (inflation-adjusted) increase of 32%, once again showing that initiatives that are focussed on directing economic growth are being given increased resources.
R354.8 million is allocated to the Innovation for Inclusive Development sub-programme to support the use of science and technology-based innovations to address the triple challenge of poverty, unemployment and inequality by creating sustainable jobs, building sustainable human settlements and enhancing service delivery.
The work done under Programme 5 supports inclusive development, the development of a green economy, exploitation of knowledge for economic benefit, and the development of indicators and instruments to measure and monitor STI investments and the performance of the NSI.

It is also the only Programme that receives a real increase in its 2018/19 allocation, reflecting the need to use the STI knowledge generated to create and grow industries and jobs, and improve the living conditions of South Africans.
In this regard, collaboration among all stakeholders, co-operative governance, planning alignment and relevance, and adequate resources and skills are all key to achieving the goals of this Programme.

a) Programme 5 Entity: Human Sciences Research Council (HSRC) The HSRC aims to be a research organisation that advances social sciences and humanities to help address pressing social issues such as inequality and poverty and enhances human welfare and development.
Hence, its strategic intent is to address key priorities facing South Africa through its research, ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 24 [Tuesday, 8 May 2018 and to generate new knowledge that helps us understand the changing human and social environment in which we live.
Key outputs in relation to its mandate include, fostering public dialogue and producing publications, researching and analysing developmental problems, promoting the African research agenda, developing research capacity for the humanities, and developing policy briefs that will inform government policy and evaluate its implementation.

The HSRC’s total projected income for 2018/19 is R570 million (R303.7 million (53%) from the Department).
Due to the high level of skill the HSRC’s mandate requires, salaries remain a key cost driver and accounts for R293.6 million of the HSRC’s total expenditure.

The second largest expenditure item is research costs of R116 million.

Funding constraints and its inability to attract and retain the necessary skills continue to negatively affect the work of the HSRC, resulting in a number of performance targets being reduced.
Its efforts to transform the race and gender of its senior research capacity is hampered by the dearth of these skills within the sector and having to compete with institutions where researchers do not have to secure external contract research projects to supplement their salaries.

Current visa requirements also hinder the ability of the HSRC to appoint researchers from other African countries.
Operational costs continue to increase in relation to its ageing Pretoria building and the data systems that it has to maintain and secure.

b) Programme 5 Entity: Council for Scientific and Industrial Research (CSIR) The CSIR’s mandate is to foster industrial and scientific development in the national interest through multidisciplinary research and technological innovation.
The strategic objectives of the CSIR are: • • • Build and transform human capital Conduct high-quality research to foster scientific development Conduct relevant research to foster industrial development ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 25 • • Infrastructure renewal and development Financial sustainability and good governance The CSIR derives its revenue from grants from the Department, contract R&D income from public and private sectors both locally and internationally, and income from IP and technology transfer initiatives.
The total projected revenue for 2018/19 is R2.7 billion (R766.8 million Parliamentary grant).

The CSIR projects zero profit for 2018/19.

Due to the highly skilled nature of the CSIR’s work, compensation of employees remains a key cost driver and, over the medium-term, accounts for approximately 58% of the CSIR’s total expenditure.
The CSIR’s 2018 Shareholder Compact states that a key concern is declining financial sustainability due in part to the loss of traditionally lucrative long-term contracts; working with external partners, especially the private sector, has become more difficult; and problematic state-owned entities.

In addition, the growth rate for the STI skills base is declining and the CSIR has not been significantly re-capitalised in the past three decades.
Modernising the CSIR Campus will require significant government support.

The latter will be implemented over 10 to 15 years through the Campus Master Plan, which will require approximately R5 billion.

The current financial situation has had the following effects on the CSIR: • • Due to the demand for senior researchers and PhDs across multiple sectors, the CSIR has a staff turnover rate of approximately 10% per annum; whereas, the industry average is approximately 7% per annum.
It projects its 2018/19 STI staff component to be similar to what it had in 2014/15 (i.e.

1869, down from 1966 in 2016/17); hence, performance targets have to be reduced accordingly.

The CSIR raises most of its contract income through R&D projects from the public sector.

Hence, the declining national investment in R&D and the requirement for the CSIR to compete for tenders has adversely effected this income stream.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 26 [Tuesday, 8 May 2018 Due to the constraints imposed by its 2018/19 finances and the projected zero profit, the CSIR sees this as a consolidation year where costs will have to be contained and certain performance targets will have to be reduced.

It is hoped that projected financial improvements in the outer year of the current medium-term will result in positive growth across all performance indicators.
Despite the current challenges, the CSIR remains committed to its mandate and will continue to implement a range of initiatives to develop the required human capacity, conduct relevant research for scientific and industrial development, develop and provide RDI infrastructure, and promote the benefits and enhance the understanding of STI across society.

5.
5.

Committee Observations Over the medium-term, Cabinet has approved budget reductions of R186.1 million, which will be effected on spending on goods and services, and on the baseline budgets of entities.

The Minister of Finance responded to the Committee’s 2017 Budget Review and Recommendation Report request for additional funds for STI, as follows: “...allocation grows at an annual average rate of 4.8 per cent.
Over the medium term, the department transfers over 90 per cent of its total budget to its entities to fund research and development that drives science, technology and innovation.

Historical spending trends suggest that the department’s six entities are adequately funded to deliver on their mandate given the yearly applications to the National Treasury to retain surplus funds.
The DST must intensify its efforts to realise co- investment opportunities with the private sector.” The Committee noting the response from the Minister of Finance and being cognisant of the fiscal constraints, responds as follows: The APPs of the Department and its entities state that their performance delivery has been structured around the budgets that have been allocated to them, and not according to all the responsibilities that they are mandated to fulfil.
This has meant that the STI mandate cannot be fully implemented at the current levels of funding.
The key cost drivers ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 27 for STI include: attracting and retaining the necessary skills, funding for skills development and transformation, funding for STI entities to fulfil mandates, funding for infrastructure acquisition and maintenance, funding for full-scale implementation of initiatives over the lifetime of these initiatives, and funding for new responsibilities.

Science related inflation is higher than standard inflation.
Hence, allocations that grow in line with standard inflation only marginally assist the STI objectives.

Allocation increases below standard inflation further exacerbate the sub-optimal funding environment that prevails.

Furthermore, relying on external funding to fulfil government-specific mandates poses the risk that R&D focus may shift to the needs of the funder and away from Government’s priorities.
In concluding its deliberations on Budget Vote 30: Science and Technology, the Committee noted the following: • • • The Committee welcomed the re-appointment of the Director- General, Dr P. Mjwara.

Having served the Department for more than 15 years, the Committee commends his commitment and is confident that his expertise will positively guide the Department through the current financial crisis.
The Committee commended the Department and the entities for the work they do and for formulating coherent strategies and performance plans.

Science, technology and innovation play a crucial role in driving economic transformation and social upliftment.

Hence, the Committee was pleased with the efforts of the Department and its entities to align their activities to support regional and national plans and strategies that seek to stimulate the economy of South Africa and the region.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 28 • [Tuesday, 8 May 2018 Transformation of the STI sector in terms of human capacity, organisational composition, and the R&D focus areas; requires deliberate, well considered, and adequately resourced interventions.

Hence, the Committee welcomes the development and the imminent release of a new STI White Paper and the plans to develop the next STI Decadal Plan.
These policy interventions will help to chart a new trajectory for the future development and enhancement of South African STI.

• Crucial to the transformation of the human capacity in the STI sector, is the creation and continued growth of a pipeline of students interested in pursuing careers in science, mathematics and engineering.

This can only be achieved if our education system provides all children, irrespective of circumstance, the same structure and level of opportunity.
• That it is crucial that STI be placed at the centre of the work of Government.

For the NSI to have an impact on the economy, it must be optimally resourced and co-ordinated.

Therefore, the Committee welcomed Cabinet’s approval of a STI budget co- ordination framework that is aligned to the Medium-Term Expenditure Framework (MTEF) and will be introduced in 2018/19.

• The Department and the entities have a mandate to deliver on Government’s national priorities.
Hence, the Committee is extremely concerned about the evident financial sustainability challenges affecting the work of the Department and the entities.

The entities most severely affected are SANSA, TIA, HSRC and the CSIR.

In addition, infrastructure and skills are vital to knowledge generation.
Therefore, the inability to: ο ο attract and retain highly-skilled individuals; grow human capital development programmes; ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 29 ο employ the students that the entities spend a lot of time training and supervising; ο maintain and acquire needed infrastructure; ο secure funding over the full lifetime of initiatives; all present serious challenges to attaining the goals set for the NSI by the NDP Vision 2030.
• The entities are constrained by a lack of adequate investment.

This necessitates them to source external contract funding, which may then deflect the focus of the work done away from national interest to that of the contractor.

Furthermore, the primary function of researchers is compromised, as they are now required to undertake administrative tasks such as sourcing contracts and preparing tender documents for research funding.
Entities are then also required to compete with organisations that are larger and/or better resourced; hence, their bids may be lower even if they do not have the same level of expertise as the entities, for these tenders.

• Creating an enabling environment for innovative small and medium enterprises is crucial.
Hence, the Committee welcomes the efforts to establish the Sovereign Innovation Fund, the development of a policy for Government to procure 30% of its good and services from South African companies, and the development of a policy to increase the uptake of locally manufactured products.

• Intergovernmental co-ordination and partnerships are instrumental in ensuring that the work done by the Department and the entities is used and implemented.
These relationships are crucial to ensuring that crosscutting activities are better co-ordinated, and resources are not wasted.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 30 • [Tuesday, 8 May 2018 Enhanced co-ordination is also necessary at Parliament among the various portfolio and select committees in instances where science and technology issues are transversal.
This especially relates to improving the access to science and mathematics education in the Early Childhood Development Phase, and the efforts and policies to create a more enabling environment for innovative small and medium enterprises.

• Awareness and understanding of science and knowing what South African STI institutions are doing, is key to stimulating and improving the public discourse around the advantages of implementing a science policy for social wellbeing and economic growth.
However, existing awareness initiatives have been reduced due to budget cuts.

• The current total investment in R&D is inadequate to drive the economic transformation agenda of South Africa and would need to be increased to effectively meet the goals of NDP Vision 2030.

6.
6.

Committee Recommendations The Portfolio Committee on Science and Technology, having considered the proposed Budget Vote 30: Science and Technology, recommends that: • All mechanisms to increase the budget allocation to the Department of Science and Technology be pursued by the Ministers of Science and Technology and Finance.

This includes: ο Urgent attention be given to implementing the STI budget co-ordination framework.
The Committee will engage with the Interdepartmental Task Team on implementation progress within the third term of the 2018 parliamentary programme.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 31 ο Government considering a process within current tender regulations that could assist public STI institutions, with the required expertise, to gain increased access to government research contracts that fall within their mandate to execute.
The Committee will schedule a briefing to facilitate discussion on this matter within the third term of the 2018 parliamentary programme.

ο Government considering mechanisms that will ensure that public STI institutions have greater, and possibly preferential, access to the R15.8 billion allocated in 2018/19 to innovation, science and technology across all government departments.
The Department and entities, in light of the funding crisis, find innovative ways to increase their efforts to be more visible to the public and drive the national dialogue on STI and its relevance to addressing critical national issues.

The House adopts Budget Vote 30: Science and Technology.

• • The Democratic Alliance and the Economic Freedom Fighters reserve their opinion on the Budget Report.

Report to be considered.


ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 32 [Tuesday, 8 May 2018 2.
SUBMISSION OF A LEGISLATIVE PROPOSAL: MEMORANDUM IN TERMS OF RULE 273 OF THE RULES OF THE NATIONAL ASSEMBLY BY THE PORTFOLIO COMMITTEE ON HOME AFFAIRS, DATED 8 MAY 2018 The Portfolio Committee on Home Affairs (“Committee”) is hereby requesting the permission of the House in terms of Rule 273(1) for the introduction of the following legislation in the House, namely the Immigration Amendment Bill, 2018 (“the Bill”).

(1) Particulars of the Bill 1.1 The Bill aims to amend the Immigration Act, 2002 (Act No.
13 of 2002), (“the Immigration Act”), so as to revise and align the provisions in section 34 of the Immigration Act relating to the detention of illegal foreigners for purposes of deportation with the constitutional rights set out in sections 12(1) and 35(2)(d) of the Constitution of the Republic of South Africa, 1996 (“the Constitution”), following the Constitutional Court’s judgment in Lawyers for Human Rights v Minister of Home Affairs and Others [2017] ZACC 22.
(2) Background and Objects of the Bill 2.1 On 29 June 2017, the Constitutional Court, in the Lawyers for Human Rights v Minister of Home Affairs and Others [2017] ZACC 22 matter (“the Constitutional Court judgment”), declared sections 34(1)(b) and (d) of the Immigration Act inconsistent with sections 12(1) and 35(2)(d) of the Constitution in that these sections of the Immigration Act do not allow for automatic judicial intervention when an illegal foreigner is detained for purposes of deportation, and do not allow for a detained illegal foreigner to challenge the lawfulness of his or her detention in person in court within 48 hours.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 33 2.2 The declaration of invalidity was suspended for a period of 24 months from the date of the order to enable Parliament to correct the defect in sections 34(1)(b) and (d) of the Immigration Act.
Pending the correction of the defect within 24 months (namely, by 28 June 2019) or upon the expiry of this period, the Constitutional Court ordered that any illegal foreigner detained under section 34(1) of the Immigration Act must be brought before a court in person within 48 hours from the time of arrest or not later than the first court day after the expiry of the 48 hours, if 48 hours expired outside ordinary court days.
The Constitutional Court also ordered that illegal foreigners who were in detention at the time the order was issued, must be brought before a court within 48 hours from the date of the order or on such later date as may be determined by a court.
2.3 The Bill will, inter alia, address the Constitutional Court judgment by amending sections 34(1)(b) and (d) of the Immigration Act, so as to ensure that any illegal foreigner detained under section 34 of the Immigration Act is brought before a court in person within 48 hours from the time of arrest or not later than the first court day after the expiry of the 48 hours, if the 48 hours expired outside ordinary court days.
The Bill will also provide that detained illegal foreigners must appear in person in court to challenge the extension of his or her detention.

The Bill will also include any necessary consequential amendments following the proposed amendments to section 34.

(3) Financial Implications for the State The Department of Home Affairs is currently implementing the Constitutional Court order and hence the proposed legislation will not lead to any additional expenditure for the state.
(4) Views of the Executive on the objects of the proposed legislation The Department of Home Affairs supports the proposed legislation.

Report to be considered ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 34 [Tuesday, 8 May 2018 3.

Report of the Portfolio Committee on Economic Development on Budget Vote 25 and Annual Performance Plans of the Economic Development Department and its entities for the 2015-16/2019-20 Medium Term Expenditure Framework period, dated 03 May 2018.
The Portfolio Committee on Economic Development, having considered Budget Vote 25, the Strategic Plans (2015/16 – 2019/20) and the Annual Performance Plans (2018/19) of the Economic Development Department and its entities, reports as follows: 1.

INTRODUCTION The Portfolio Committee on Economic Development (the Committee) analysed the Strategic Plans, Annual Performance Plans (APPs) and the budgets of the Department and its four (4) entities up to 24 April 2018.
It is important for budget plans to be linked to strategic plans so as to ensure that key objectives and priorities are budgeted for and achieved.

Thus, the purpose of the engagements was to assess and analyse the Strategic Plans, APPs and budgets of the Department with a view of ensuring that there is alignment of reporting between the Strategic Plans, APPs and budgets.
The Annual Performance Plan, the fourth of a standing five-year strategic plan, sets annual targets and aims to enhance implementation and accountability.

These important annual engagements take place at a time when South Africa continues to work towards full economic recovery after a number of challenging years.

South Africa has begun to see improvements on a number of fronts, including improved ratings by the agencies.

Global growth has improved, which may assist domestic growth prospects.
The core challenges however remain, and even greater effort will be needed to return the country back to the path of its own economic potential.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 35 Stakeholders across society will need to strengthen working relations to achieve the desired effect.

Great efforts in the implementation of sound economic policies remain central going forward, and the Committee exercises its oversight role with this context in mind.
Our government has over time developed tools and instruments to tackle the challenges faced.

These include the National Development Plan (NDP), the New Growth Path (NGP) (led by the Economic Development Department), the National Industrial Policy Framework and many others linked to them, all with a view of securing a better future for our people.
These must be pursued by all so as to achieve a common goal of ensuring a better life for all our people, and most importantly, to build a better South Africa for future generations.

The long term vision must always guide us in our individual and collective efforts for improved conditions.

The Economic Development Department has a crucial role to play in the economic activities of the country, especially the interpretation and implementation of the objectives of the policy instruments mentioned above.
It has the responsibility to coordinate the formulation of cross sector policy programmes that will seek to improve the social capital of marginalised groups.

It oversees one public financing institutions that fully participate in the new growth path and development.
The policies led by the Department must also play a role in the creation of employment as per the call of the NDP, ensure a higher rate of investment, and the coordination of a more efficient and competitive infrastructure, amongst the many responsibilities.

Together with partners in government and the private sector, the department must ensure the development of a prosperous and balanced regional economy in Southern Africa and the continent, based on the principles of equity and mutual benefit.
The Committee will continue to play its role of ensuring vigorous oversight, and will give legislative support to the Department.

This report outlines the nature of the engagements that took place during the briefings, on the diverse issues affecting our economy, and the possible solutions that will be explored by the Department for the remainder of the Medium Term Expenditure Framework (MTEF).
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 36 [Tuesday, 8 May 2018 The following entities report to the EDD: Development Finance Institution – Industrial Development Corporation (IDC) Economic Regulatory Bodies – Competition Commission, Competition Tribunal; and International Trade Administration Commission of South Africa (ITAC).

THE ECONOMIC DEVELOPMENT DEPARTMENT 2.


BACKGROUND The core mandate of the Department is to identify priorities for job creation, inclusive growth and industrialisation.

Further to support the alignment of the state around implementation, oversee and provide strategic direction to development finance institutions, as well as the provision of strategic direction on competition policy and trade administrative matters through oversight of regulatory bodies.
The Economic Development Department is responsible for the monitoring and implementation of the action plans on the various job drivers in the New Growth Path (NGP).

EDD is a key Department for the following outcomes of the Medium Term Strategic Framework; • Outcome 4: Decent Employment through Inclusive Growth.
• Outcome 5: A skilled and capable workforce to support an inclusive growth path • Outcome 6: An efficient, competitive and responsive economic infrastructure network • Outcome 7: Vibrant, equitable, sustainable rural communities contributing towards food security for all The Department provides technical support to the Presidential Infrastructure Coordinating Commission (PICC), whose Secretariat is chaired by the Minister of Economic Development.
The Department plays an important ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 37 role in the implementation of the Nine Point Plan as outlined in the 2015 State of the Nation Address.
The priority areas of the plan are as follows: o Resolving the energy challenges o Revitalising the agriculture and agro-processing value chain o Advancing beneficiation and adding value to mineral wealth o More effective implementation of IPAP o Encouraging private sector investment o Moderating workplace conflict o Unlocking potential of SMMEs, co-operatives, township and rural enterprises o Cross cutting areas to reform, boost and diversify the economy, such as the water and sanitation infrastructure o Growing the ocean economy and tourism The Department administers the following legislation: • Industrial Development Corporation Act (Act No.
22 of 1940); Competition Act (Act No.

89 of 1998, as amended); International Trade Administration Act (Act No 71 of 2002); and Infrastructure Development Act (Act No.

23 of 2014).
The following policy frameworks, programmes and policy pronouncements guide the Annual Performance Plan (APP) of the Department: • State of the Nation Address (SONA) annually; • National Development Plan; • New Growth Path; • National Infrastructure Plan; • • Delivery Agreement on Outcome 4: Decent Employment through Industrial Policy Action Plan; inclusive economic growth; • Delivery Agreement on Outcome 5: Skilled and capable workforce to support inclusive growth; ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 38 [Tuesday, 8 May 2018 • Delivery Agreement on Outcome 6: Efficient, competitive and responsive infrastructure; • Delivery Agreement on Outcome 7: Vibrant, equitable, sustainable rural communities; • Framework for South Africa’s response to the international economic crisis.
• Finance and fiscal policy framework; • Public Finance Management Act No.

1 of 1999; • Municipal Finance Management Act No.

56 of 2003 and related by-laws The Department facilitated the signing of and monitors the implementation of the following Social Accords: Basic Education Accord; National Skills Accord; Local Procurement Accord; Green Economy Accord Youth Employment Accord and; October 2012 Social Accord.

3.
3.

2014 – 2019 STATEGIC PLAN OF THE ECONOMIC DEVELOPMENT DEPARTMENT The Strategic Plan sets out the objectives of the Department for the duration of the current administration.

The Department has identified six strategic objectives which have been integrated into three programmes.
The Department’s Strategic Objectives are the following; ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 39 PROGRAMMES STRATEGIC OBJECTIVES Programme 1: Administration Programme 2: Growth Path & Social • Strategic Objective 1: Provide strategic guidance to the Department; and technical and administrative support to the Ministry to achieve the rest of the Department’s strategic objectives.
• Strategic Objective 2: Co-ordinate jobs drivers and the implementation of the New Growth Path economic strategy in support of the National Development Plan.

Dialogue • Strategic Objective 3: Facilitate Social Dialogue and implementation of Social Accords.

• Strategic Objective 4: Coordinate infrastructure Development and strengthen its positive impact on the economy and citizens.
Programme 3: Investment, Competition & Trade • Strategic Objective 5: Promote Investment, industrial financing and entrepreneurship for jobs and inclusive growth.

• Strategic Objective 6: Promote competition, trade and economic regulation in support of job creation and social inclusion.

4.

POLICY PRIORITIES FOR 2017/18 Delivering the 2018 State of the Nation Address’ (SONA’s), the President of the Republic noted the main economic challenges facing the country, and outlined the plans to tackle them.
Amongst these were the fact that poverty levels rose in 2015, unemployment has gone up and inequality has persisted.

For several years the country’s economy has not grown at the pace needed to create enough jobs or lift sufficient numbers of South Africans out of poverty.

The President highlighted that public finances have been constrained, limiting the ability of government to expand its investment in economic and social development.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 40 [Tuesday, 8 May 2018 Amongst the proposed plans are a few that tie in well with the Economic Development Department’s mandate of promoting the creation of decent employment and inclusive growth.

These include the call that young people will be moved to the centre of the economic agenda, the planned launch of the Youth Employment Service Initiative, and a number of initiatives around infrastructure investment.
In the 2017 Budget Review, National Treasury noted that barriers to inclusive growth and broad-based transformation should be broken through the de-concentration of highly concentrated industries and those dominated by a few, accelerating the inclusion of millions of black South Africans into jobs and businesses, and returning to a path of rising per capita incomes for all.
According to National Treasury these obstacles can be overcome through the National Development Plan goals of: • Improving education and skills development, starting with a more effective basic education and early childhood development sector.

• Strengthening competition laws to address skewed ownership and control, which is a barrier to business entry and the expansion of key markets that are essential for job creation.
• Increasing private-sector participation in sectors dominated by public enterprises, and ensuring that effective regulatory authorities curb the power of monopolies.

• Providing support and incentives for labour-intensive sectors, including agriculture, agro-processing and tourism.

• Overcoming the spatial fragmentation of South Africa’s cities, so that people have easier access to jobs and infrastructure.
4.1 Amendments to Legislation During discussions with the International Trade Administration Commission (ITAC), the Competition Commission and the Department on their 2017/18 APPs, there were indications of possible amendments to their respective legislation.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 41 • ITAC reported that it will make submissions to the Department on the possible changes to the International Trade Administration (ITA) Act No.

71 of 2002.
71 of 2002.

• Amendments to the Competition Act No.

89 of 1998.

5.

THE BUDGET OF THE DEPARTMENT AND ITS ANNUAL PERFORMANCE PLAN FOR 2017/18 The Department implements the aspirations of the National Development Plan, New Growth Path, Nine Point Plan, key focus areas and its objectives using three programmes namely Administration, Growth Path and Social Dialogue; and Investment Competition and Trade.
Table: Linking programmes with performance goals and budget PROGRAMMES STRATEGIC OBJECTIVES KEY PERFORMANCE INDICATOR & PRODUCTS/OUTPUTS Programme 1: Administration Budget : R86.6 m Programme 2: Growth Path & Social Dialogue Budget: R34.4 m Programme 3: Investment, Competition & Trade Budget: R951.7 m • Strategic Objective 1: Provide strategic guidance 2 KPIs (2 Products/) to the Department and Ministry.
• Strategic Objective 2: Co-ordinate jobs drivers 3 KPIs (18 Products) and the implementation of the New Growth Path.

• Strategic Objective 3: Facilitate Social Dialogue 3 KPIs (8 Products) and implementation of Social Accords.

• Strategic Objective 4: Coordinate infrastructure 6 KPIs (114 Products) Development and strengthen its positive impact on the economy and citizens.
• Strategic Objective 5: Promote Investment, 5 KPIs (26 products) industrial financing and entrepreneurship for jobs and inclusive growth.

• Strategic Objective 6: Promote competition, trade 4 KPIs (14 products) and economic regulation in support of job creation and social inclusion.
Total R 1 072.7m 23 KPIs (182 products/outputs) ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 42 [Tuesday, 8 May 2018 5.1 DEPARTMENTAL BUDGET The Economic Development Portfolio has been allocated nearly R1.1 billion, representing approximately 0.17 per cent of the national government budget.

The Portfolio is one of the few for which the budget allocated increased for 2018/19.
The Portfolio budget is distributed as follows (figures are rounded): - Competition Commission R282m (26% of total budget) - Tirisano Fund (via IDC)** R240m (23% of total budget) - SEFA R229m (21% of total budget) - Economic Development Department R140m (13% of total budget) - ITAC R102m (10% of total budget) - Competition Tribunal R35m (3% of total budget) - Steel Development Fund (via IDC)# R30m (3% of total budget) - PICC (via IDC) R15m (1% of total budget) - Total R1 073m ** Funded from contributions by the construction industry # Funded from the fine imposed on a steel producer When the funds are represented by programme, the following table summarises the picture: Programme Budget R million 2017/18 2018/19 Nominal Increase / Decrease in 2018/19 Real Increase / Decrease in 2018/19 Nominal Percent change in 2018/19 Real Percent change in 2018/19 Programme 1: Administration Programme 2: Growth Path and Social Dialogue Programme 3: Investment, Competition and Trade 86,5 86,6 0,1 - 4,4 0,12 per cent -5,10 per cent 32,8 34,4 1,6 - 0,2 4,88 per cent -0,59 795,0 951,7 156,7 107,1 per cent 19,71 cent per 13,47 per cent TOTAL 914,3 1 072,7 158,4 102,5 17,3 per cent 11,21 per cent Table: EDD’s BUDGET 2018-2019 ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 43 5.2 Budget Allocation by Programme The Portfolio’s budget has increased by R158.3 million from R914.3 million in 2017/18 to R1.0726 billion in 2018/19.
The Investment, Competition and Trade programme was allocated R951.7 million or about 89 per cent of the budget.

The Administration programme received R86.6 million or about 8 per cent of the total budget allocation and the smallest portion of R34.4 million representing approximately 3 per cent of the budget went to the Growth Path and Social Dialogue programme.
The total budget for the Administration programme has increased slightly by R100 thousand, representing a 0.1 per cent nominal while in real terms1 the allocated amount has been reduced by R4.4 million or 5.1 per cent.

The total budget for the Growth and Social Dialogue Programme has increased by R1.6 million in nominal terms from R32.9 million to R34.5 million over the 2017/8-2018/19 financial years.
When taking inflation into account, the budget for this programme has decreased slightly by less than one percent.

The budget of the Growth Path and Social dialogue sub-programme was reduced by R2.1 million compared to the previous year.

This sub-programme is aligned to the country’s economic strategy, the New Growth Path which focuses on jobs drivers and employment creation.

This programme is the largest by budget allocation making up about 89 per cent of the total budget of the department.
For the 2018/19 financial year, the programme has received R951.7 million and compared to 2017/18, this is an increase of R156.7 million.

The budget for this programme is mainly for transfers to entities namely, the Competition Commission, Competition Tribunal, ITAC, Sefa and IDC - development finance institutions and economic regulatory bodies.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 44 [Tuesday, 8 May 2018 Programme Budget Nominal Real Nominal % Real % Rand Rand change change change change R million 2016/17 2017/18 2018/19 2019/20 2016/17-2017/18 2016/17-2017/18 Programme 1: 88,1 80,7 79,4 84,6 - 7,4 - 12,2 -8,40 per cent -13,83 per cent Administration Programme 2: 31,0 35,6 39,6 42,4 4,6 2,5 14,84 per cent 8,03 per cent Growth Path and Social Dialogue Programme 3: 546,9 681,0 725,8 777,2 134,1 93,7 24,52 per cent 17,14 per cent Investment Competition and Trade TOTAL 666,0 797,3 844,8 904,2 131,3 84,0 19,71 per cent 12,62 per cent Source: Economic Development Department 6.
KEY PERFORMANCE AREAS FOR 2018/19 The following are the Key Performance Areas on which the budget for 2017/18 will be spent.
Key Performance Indicators Output 1: Audit Opinion obtained in respect of the previous financial year Unqualified Audit Opinion 2: Governance & Accountability (G &A) Monitoring Performance Level two Assessment Tool (MPAT) level to be obtained obtained for G&A by MPAT 3: Number of analytical and public policy advocacy reports on 4 Reports socio-economic development and the NGP produced 4: Number of reports on NGP jobs drivers and coordination 4 Reports structures 5: Number of reports on the implementation of the Green 2 Reports Economy Accord ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 45 6: Number of reports on black women and youth with access to 3 Reports employment and entrepreneurship opportunities 7: Number of reports on support provided to provinces 10 Reports 8: Number of reports on social dialogue interventions to save and 3 Reports create jobs and reports on implementation of Social Accords 9: Number of quarterly Cabinet-level progress reports of 64 Reports infrastructure Strategic Integrated Projects (SIPs) 10: Number of infrastructure projects evaluated, unblocked, fast 8 Action minutes tracked or facilitated or project assessments completed 11: Number of Cabinet and PICC strategic decisions on 4 Action minutes infrastructure implemented 12: Number of PICC meetings held and facilitated 30 Records of meetings 13: Number of Coordination actions to drive implementation of 4 Records of SIP 5 of the National Infrastructure Plan Co-ordination actions 14: Number of reports on initiatives to increase localisation in the 4 Reports infrastructure and industrialisation programmes, including through the PPPFA, and local supplier development 15: Number of investment initiatives facilitated, fast-tracked and/ 14 Action minutes or unblocked 16: Number of reports produced on funding allocations on 3 Reports township enterprises
 by DFIs and government departments 17: Number of reports on the level and impact of industrial 4 Reports finance by DFIs and departments 18: Number of Ministerial or departmental oversight engagements with the IDC held 4 Records of engagement 19: Number of economic development opportunities identified 1 Action minute through infrastructure projects 20: Number of strategic initiatives to enhance the capacity, 3 Action minutes performance and outcomes of economic regulators held 21: Number of reports on initiatives on mergers & acquisitions, 4 Reports market inquiries or abuse of dominance 22: Number of initiatives to ensure trade authorities and policies 2 Action minutes support industrialisation and employment 23:Number of Ministerial/ departmental oversight engagements 5 Records of with trade and competition authorities held engagements ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 46 [Tuesday, 8 May 2018 7.
COMMITTEE OBSERVATIONS Key issues and observations raised by the committee during its deliberations: The Committee appreciated the work of the Ministry in coordinating the efforts of economic regulators, development finance institutions, the PICC and the Department.
It drew attention to the excellent progress made with reorienting competition policy to employment and development outcomes, noting in particular the successes with the fight against cartels and the incorporation of public interest conditions in merger approvals following interventions by the `Minister in terms of the Competition Act; the developmental focus of trade policy that supported local manufacturers and increasingly required reciprocal investment and employment commitments to upgrade the competitiveness of industry; expansion in the level of industrial funding disbursed by the IDC over the past year, particularly to black industrialists; the greater support for an integrated infrastructure delivery programme and efforts to unblock obstacles to investment and to deeper localisation and industrialisation.
During its deliberations, the committee raised questions relating to the following; • The relevance of the KPIs to the Fourth Industrial Revolution and the need for cooperation between the EDD and relevant stakeholders in this regard The world economy is evolving towards new global trends through not just another technological revolution, but a productivity revolution.
Experts have said that these will bring benefits to people everywhere, make the planet more sustainable and provide opportunities for businesses of all kinds.

South Africa’s fledgling economy needs to move with the times and become an active participant in the new order.
While some work is being done by EDD (High-level Symposium held in December 2017), the IDC (new investment mandate), Competition Commission (impact of ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 47 competition in new industries) and DST (resource commitments for R&D), the country’s current economic policies do not yet fully speak to this imperative, and definitive policy guidelines will be needed for better coordination of the way forward.
The State of the Nation Address in February 2018 set out government’s approach that will provide a coherent institutional arrangement for coordination.

• The role of local government (municipalities) in the quest to revive and transform rural and township economies The Department has reported, now and in the past, that it continues to work with various stakeholders and different spheres of government in coordinating economic development.
The Committee is of the view that this can be greatly improved by putting in place standard operating procedures and give more support to local government in the quest to revive and transform rural and township economies.

• The appointment of a permanent Director General: The Committee has for some time called for the appointment of a permanent Director General.

The appointment will bring progressive stability and elevate administrative accountability for the Department.
• Delays in amending the International Trade Administration (ITA) Act No.71 of 2002.

Despite the ever-changing economic and global trade environment, the ITA Act, has never been amended.

Plans have been underway to start the process of amending the legislation and it is expected that the Bill will be tabled before Parliament later in the year.

The Department stated that amending certain parts of the ITA Act has implications for other Southern African Customs Union (SACU) member countries.
ITAC was not ready to come forward with the amendments in previous years but expects to be able to do so soon.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 48 [Tuesday, 8 May 2018 • Other expected pieces of legislative amendments for processing by Parliament The Competition Commission alluded to a need to amend the Competition Act No.

89 of 1998 to make it possible to implement the criminalisation clauses of the Competition Amendment Act No.1 of 2009.
The Committee notes that the processes to bring the amendments before it are underway.

• The number of Key Performance Indicators on the Department’s Plans The Strategic Plan had been revised and 23 KPIs.

• Intra-Africa trade The Committee noted and appreciated the commitment that trade studies would be undertaken on African regional integration.
The successful implementation of sound strategies in this regard could see more South African businesses move into Africa, thus ensuring that the volume of exports increase.

Local manufacturers, with sufficient support, would also stand to benefit from the plans.

8.

RECOMMENDATIONS The Department should; 1.

Provide quarterly updates to the Committee, on progress in respect of the following staff related matters; 1.1.
The filling of all posts in which staff are in acting positions, in particular that of the Accounting Officer.

The Committee notes that the last fully-appointed Director-General of the Department left before the 2015/16 financial year.

1.2.

The implementation of the Memorandums Of Understanding (MOUs) and Ministerial Expert Panels and other strategies for acquiring the requisite skills for the Department.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 49 1.3.
The reviewing of organisational structure 1.4.

Drafting of the Employee Retention Strategy 2.

Brief the Committee on the need for steps taken and timeframes for drafting of the amendments to the ITA Act.

3.

Provide the Committee with quarterly updates on the funds that are administered by it (the Steel Development Fund, Tirisano Fund) and the entities, and the impact these have on the transformation of their respective industries.

4.
4.

Continue to ensure that the process to incorporate the National Empowerment Fund into the IDC is undertaken.

5.

Report on the IDC compliance with BBBEE legislation in its investment operations annually.

6.

Lead the process that will see the country readying itself for the Fourth Industrial Revolution.

Policy guidelines in this regard may be necessary, beginning with conversations with the relevant stakeholders in and outside of government to encourage innovation.

7.
7.

Strengthen its capacity to monitor entities continually to ensure an effective implementation of the government’s transformation project.

8.

Continue to engage National Treasury on the revenue allocation to the Competition Authorities in relation to the anticipated legislation and the additional responsibilities that will be placed on them.

9.
9.

Facilitate the design of a new collaborative model between it and the Small Business Development so as to ensure that effective support is given to Small, Medium and Micro-sized businesses.

10.

Report on progress made in addressing spatial development and urbanisation challenges in the country.

The report should be presented in the next six months.

11.
11.

Report on a quarterly basis, on the impact of the efforts to ensure alignment and integration of economic priorities at all spheres of government, particularly at provincial and municipal levels.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 50 [Tuesday, 8 May 2018 PART B: THE ENTITIES 1.
INDUSTRIAL DEVELOPMENT CORPORATION (IDC) Established in 1940, the IDC has been instrumental in implementing the country’s industrial policy, establishing some of the industries that are today cornerstones of South Africa’s manufacturing sector.

Over its 75 years of existence, the IDC has driven growth by building partnerships, providing funding and other forms of support to companies and ensuring their long- term sustainability.
The Corporation reports that its priorities are aligned with government’s priorities of job creation, reducing inequalities and contributing to economic transformation.

For the 2016/17 financial year, the IDC began the implementation of an internal restructuring initiative called Project Evolve.

The IDC reports that the restructuring process, under new business heads, has grouped industries into related sectors.
The aim is to ensure that the IDC is more effective in funding those sectors that will have the most beneficial effects on the economy.
In terms of Project Evolve priority industries have been classified into the following; • Value Chains – Metals, Chemicals and pharmaceuticals, Agro- processing and Agriculture • New Industries – Forward looking and innovation sectors, • Special high Impact sectors – Entertainment and clothing and textiles • High Impact Sectors – sectors which contribute to development goals • Industrial Infrastructure – utilities sector i.e.

electricity, water and telecommunications and logistics.
1.1 IDC 2018/19-2022/23 CORPORATE PLAN 2017 Highlights: IDC approved funding for some notable projects such as the recently launched Beijing Automotive Industrial Corporation motor vehicle assembly project, a liquid petroleum gas storage project being implemented to address gas shortages and support for the AB Inbev initiative to eliminate barley imports by supporting emerging farmers’ production.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 51 IDC reported that it planned to disburse between R97 billion and R123 billion over the 2017-2022 five-year period.

IDC was targeting that between R15.9 billion and R23.5 billion of the funding that it provides over the three-year period (2017-2020) would go to the development of black industrialists.

Funding for women and youth entrepreneurs would continue to be prioritised 2018-23 Plan.
According to the current corporate plan, the IDC is planning to approve funds from R100 billion to R125 billion over the next five years.

On transformation funding, the IDC is planning to set aside between R16.9 billion and R24 billion and a minimum of 15 percent or R2.5 billion of that amount will be for black woman industrialists.

In addition, the IDC also has a funding programme for women-empowered businesses with a target of R4,6 billion.
There is a clear need to increase efforts to expand funding to black women particularly as industrialists and to increase the support to black South Africans.

The Committee notes that the largest black industrialist project involved a black woman mine-owner.

However, the overall profile of investment projects still need to be rebalanced and in this regard, the IDC must invest more in supporting the development of business plans by women, youth and black industrialists.
The IDC has developed the following Key Focus Areas for the 2018/19 to 2022/23 period: 1.

Maintain Financial Sustainability • Diversify portfolio and sources of capital, grow returns and reduce costs and; • Effective performance management of subsidiaries.

2.

Capitalise on Rest of Africa (RoA) opportunities • Increasing the RoA pipeline of deals aligned to IDC’s strategic priorities with emphasis on the development of regional value chains.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 52 [Tuesday, 8 May 2018 3.

Gear up for the Fourth Industrial Revolution (4IR) • Developing a strategy for investments in 4IR in the broader economy, whilst exploring opportunities to implement 4IR in existing investments.

4.
4.

Increase Industrial Development • Effective implementation of value chain/priority sector strategies; • Developing a health projects pipeline; • Support sectors with immediate impact on production capacity and job creation and; • Support companies in distress and those affected by the current environment.

5.

Establish a High Performance Organisation Instilling a high performance culture and; • • Enhancing operational efficiencies by improving systems, processes and IT, using technology.
Furthermore, the following Development Outcomes have been set for the next 3-year period to March 2021: Base Target • • • Number of direct jobs to be created and saved 96 530 118 846 Value of funding to Black Industrialists R16.9 bn R24.6 bn Value of funding to Black Woman Industrialists Minimum of R2.5 bn • Value of funding for Women-empowered businesses R3.7 bn R4.6 bn • • • Value of funding for Youth-empowered businesses R2.4 bn R3.1 bn Value of funding to Black-owned Companies R21.2 bn R26.3 bn Value of funding Localisation R14.8 bn R17.2 bn Source: IDC ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] Table: IDC Strategy Pillars 53 Increasing Industrial Development Impact Financial Capital Human, Social, Natural and Manufactured Capital Ensuring Long-Term Sustainability • Plan investment return and risk profile to ensure sufficient growth to replace existing cash generators • Structure investments to increase direct equity returns • Manage risks through appropriate investments, pricing and management of the portfolio • Implement measures to manage concentration risk in the IDC portfolio Human resources • Ensure appropriately skilled and capacitated human resources • Entrench a culture of performance and development Stakeholders • Improve customer service • Build partnerships with other financiers to leverage off different strengths and mandates.
• Increase engagements with sector players to identify opportunities • Develop black industrialists • Strengthen IDC expertise to contribute to policy • Build strong communities around IDC funded projects Natural environment • Improve IDC’s and industry’s environmental sustainability Utilisation of resources • Improve efficiency through continuous improvement of systems • Priority sector strategies where the IDC plays a proactive role • Strengthen IDC’s • development objectives and strategies Identify and develop new industries that can be drivers for growth and employment in the future • Increasing the level of empowerment, black industrialists and transformation through our investments • Support infrastructure projects that unlock industrial development • • • • • Align the IDC with the NDP, NGP, IPAP, APAP and NIP sector development objectives Increase the number of projects under development and in implementation Provide industrial finance to achieve sector development objectives Increase regional industrial integration by developing value chains Ensure that SMME’s through our subsidiaries are supported effectively and efficiently ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 54 [Tuesday, 8 May 2018 1.2 BUDGET AND FORECASTS 1.2.1 Key Financial Implications (IDC Mini-Group) R million Cash flows Advances (R'm) Baseline Target 2018/19 to 2022/2023 92 989 122 838 Funding raised (borrowings and share 64 913 81 339 sales) (R'm) of which foreign borrowings 8 405 8 405 Balance sheet end-2022/2023 Financing at market values (R'm) 175 348 152 569 Borrowings (R'm) Debt/equity (%) 64 573 57 166 58% 59% Impairments as % of portfolio at 24.2% 24.3% cost Impairments as % of portfolio at 18.3% 21.6% market values Income statement Dividend income Five years from 2018/19 to 2022/23 21 583 19 591 Interest and fee income 32 012 34 417 Borrowing costs 17 461 16 755 Impairments and bad debt write- 18 110 21 243 offs Net operating income before 6 6663 4 396 capital realisations Source: IDC Additional Key Highlights Net approvals increased by 26% year-on-year to a record level of R14.5 billion in 2015/16, as well disbursements by 4.6% year-on-year to R11.4 billion.
The Industrial Development Corporation reported a profit amounting to R223 million in 2016.

It was significantly low in comparison to the previous financial years’.

IDC’s profits dropped by 87% from R1.65 billion in 2014/15 to R223 million in 2015/16.

The Steel producer Scaw Metals, which is 74% owned by the IDC, recorded losses of R1.1 billion, while the agrochemicals group Foskor, which is 59% owned by the IDC posted a R568 million loss.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 55 The impairment charge of R3.6 billion to the income statement for the year ended 31 March 2016 was double the figure for 2015.

The impairment ratio as a percentage of IDC’s book at market value increased significantly from 8.8% to 10.1%.

1.2.2 Disbursement Targets vs.
Borrowings Borrowing sources Budgeted Actual Borrowings Budgeted Borrowings for FY (01 April 2016 to Borrowings for FY 2017/18 31 January 2017) 2017/18 (R' millions) Domestic 8 750 5 070 borrowings Public bonds Bank loans 2 900 3 850 Private placements 2 000 730 2 340 2 000 bonds Foreign borrowings 3 750 2 566 DFI’s/ Multilateral 1 142 402 agencies Bank loans and 2 956 2 164 other 8 333 2 000 2 333 4 000 4 167 1 667 2 500 Total borrowings 12 500 7 636 12 500 1.3 RECOMMENDATIONS Following the deliberations, Portfolio Committee on Economic Development recommends that the Executive Authority and Accounting Officer (s) ensure that: 1.
The IDC’s investment strategy puts more emphasis on local procurement of designated items so that the MTSF target of 75 per cent local procurement be reached by 2019.

Equally, the strategy must ensure that local jobs are promoted so as to achieve the National Development Plan’s goals on job creation.

Attention must be given to the BAIC project in Port Elizabeth in both these cases.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 56 [Tuesday, 8 May 2018 2.
A monitoring strategy is developed to ensure that the Black Industrialists Programme meets its goal of inclusivity to reduce income inequalities in the country and contribute to rural economic growth.

3.

The IDC increases investments in tourism infrastructure to support and increase the impact of the country’s tourism industry on economic growth and real transformation.

4.
4.

The IDC must develop strategy and guidelines for the funding of projects that will advance the country towards the Fourth Industrial Revolution.

5.

Greater effort is made for the IDC to reach out to entrepreneurs with disabilities.

6.

The IDC’s debt to equity ratio is maintained at a sustainable level, taking its development mandate into account; 7.

The IDC increases its presence and funding support in the various provinces, as well as strengthening its business support unit to cover these areas.
Emphasis is made on increased presence and support in rural provinces.

8.

Mechanisms must be put in place to ensure that SEFA’s impairment levels are significantly reduced without losing its targeted constituency (market) is intended to serve.

9.

The Committee receives quarterly progress report on Foskor and Scaw.

The Committee will especially monitor the process of bringing in of private equity partners at these two institutions.

2.
2.

THE COMPETITION COMMISSION The Competition Commission was established in terms of the Competition Act No 89 (as amended), as an investigative and enforcement agency.

It is vested with powers to investigate and control restrictive business practices, abuse of dominance and mergers.
The ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 57 mandate of the Commission in terms of the Act is to promote and maintain competition in South Africa in order to: • Promote the efficiency, adaptability and development of the economy; • Provide consumers with competitive prices and product choices; • Promote employment and advance the social and economic welfare of South Africans; • Expand opportunities for South African participation in world markets and recognise the role of foreign competition in the Republic; • Ensure that small- and medium-sized enterprises have an equitable opportunity to participate in the economy; and • Promote a greater spread of ownership, in particular to increase the ownership stakes of historically disadvantaged persons.
To this end, the Competition Commission carries out its work by • Investigating and prosecuting restrictive horizontal and vertical practices; Investigating and prosecuting abuse of dominant positions; • • Deciding on mergers and acquisitions applications; • Conducting formal inquiries in respect of the general state of competition in a particular market; • Granting or refusing applications for exemption from the application of the Act; • Conducting legislative reviews and; • Developing and communicating advocacy positions on specific competition issues.
2.1 STRATEGIC GOALS The Commission has three strategic goals for the 2015-2020 period.

These are; • Effective enforcement and merger control o Efficient and effective merger regulation.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 58 [Tuesday, 8 May 2018 o Competitive markets through action against cartels and abuse of dominance.

o Improved public interest outcomes in markets (relating to jobs, industrialisation, exports, development of black-owned businesses and SMMEs.
o Increased competition compliance.

o Improved understanding of market dynamics in priority sectors.

• Strategic Collaboration and Advocacy o Improved co-ordination on the application of economic policy and competition policy.

o Recognition of developmental perspectives in domestic and international competition law discourse.

o Improved compliance and awareness.

• High-performance Agency o Improved organisational efficiency.

o Accountably managed resources.

o Highly motivated and productive people.
2.2 Alignment to Government Outcomes The Commission’s strategic response to Government’s policies and planning outcomes during the period 2015-2020 includes the following: • Considering socio-economic outcomes in case analysis, particularly in cases which have a large impact on the price of goods, public access to resources and market entry for small firms and historically disadvantaged individuals; ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 59 • Designing conditions and remedies which address employment, market concentration and other socio-economic challenges, and monitoring compliance thereof; • Expanding the opportunities for South African participation in world markets, in line with the promotion of economic growth through the use of enforcement, exemptions and merger instruments; • Continuing advocacy and enforcement in regulated sectors to drive competitive conduct; • The Commission’s selection of its priority sectors to include those with high-growth and jobs potential; • Considering the linkages between trade policy and competition policy in its work.
This includes ensuring alignment of the Commission’s priority sectors to IPAP-designated sectors and pursuing Market Inquires in economically-strategic sectors; • Pursuing collaborations and partnerships with other state actors on economic policy; • Continuing advocacy and training work with municipalities, trade unions and the general public, particularly on bid-rigging and competition awareness.
2.3 ANNUAL PLANS FOR 2018/19 Key features of the Commission’s 2018/19 Annual Performance Plan are reported as follows: Mergers • The Commission has internal service standards for assessing mergers of varying complexities, guided by the timelines provided for in the Act.

• The Commission will maintain efficiencies in the turnaround times of investigating Phase 13 mergers.

• The Commission will ensure that more than 75% of merger cases that are litigated or taken upon review in the courts, are won.
• It will continue monitoring the implementation of conditions imposed on parties.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 60 Cartels [Tuesday, 8 May 2018 • The Commission will initiate 8 new cartel investigations in 2018/19.

This is a drop from the 2017/18 commitments of 25 initiations.

The decline in initiations is due to resource constraints coupled by a high (increasing) and complex volume of cases.
• The Commission foresees that it will take longer to complete on-going investigations.

There are more demanding obligations to complete investigations in a shorter period of time as per the efficiency targets below.

Such obligations need to be supported with resources: – At least 50% within 12 months; – At least 60% within 18 months; and – At least 75% within 24 months.
• Some key on-going cartel investigations include automotive components manufacturers, manufacturers of edible fats & oil, suppliers of set top boxes, fresh produce agents & beef producers.

• The Commission aims to win more than 75% of cartel cases in the Tribunal or the courts.

Market Conduct • The Commission will complete more than 75% of abuse of dominance investigations within 24 months.
• Some key on-going investigations include Transnet (Ports & Rail), School Uniform, Vodacom and Pharmaceutical drugs.

• The Commission will further initiate 2 new abuse of dominance investigations in the priority sectors.

• The Commission aims to win more than 70% of such cases in the Tribunal or the courts.

• The Commission will further aim to complete (make a decision) more than 75% of exemption applications within 12 months.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] Litigation 61 • The Commission has 154 cases at various stages of prosecution in the Competition Tribunal and the courts, of which 121 are cartel cases.

• Cases before the Constitutional Court are: Stanley’s Removals, Hosken Consolidated Investment Ltd/ Tsogo Sun, Media 24, Caxton & CTP Publishers and printers vs. Multichoice (Pty) Ltd and SABC.
• Some key abuse of dominance cases before the Tribunal/ courts include: Computicket, SA Airlink (Johannesburg-Umtata route), Afrimat, Wesgro, Rooibos and potato seeds.

• Some cartel cases currently on the Tribunal or court roll include: 2010 FIFA WC Stadia Tender, banks that manipulated the rand, furniture removal companies, waste management companies, media companies, fats & oils companies & suppliers of asphalt.
Market Inquiries and Economic Research • The Commission will initiate one market inquiry in 2018/19 and aim to complete two.

• On-going market inquiries, all of which are at various stages, include private healthcare, grocery retail, data costs and public transport.

• The Commission will also undertake one scoping study into markets wherein there may be competition challenges.

• One Impact Assessment on previous interventions of the Commission will be undertaken.
• The Commission also seeks to promote the teaching of competition law and economics in universities and will thus continue its partnerships with select universities.

Advocacy • The Commission commits to publish one guideline to stakeholders in 2018/19 on the application of the Act.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 62 [Tuesday, 8 May 2018 • The Commission will also continue with outreach programs.
Stakeholder groups targeted for engagement in 2018/19 include Government entities, Trade Unions and the Youth, among others.

The aim of such engagements is education and awareness.

• Important advocacy cases which will be continued include Automotive Aftermarkets and School Uniform.

• The use of the media (print, radio, broadcasting and social media), is a strategic tool the Commission uses to reach varied types of audiences with its messages.

There are targets developed in this regard.


• The Commission will continue its partnerships with BRICS and African counterparts.

Commitments on collaborative research and other projects will strengthen the sharing of expertise and mutual capacity-building amongst the partners.

Resourcing a High-performing Agency • Given the need for additional human capital, the Commission aims to put measures to retain its existing staff complement, with a targeted 90% retention rate.
• The Commission will further invest one percent of its Human Resource spending into Learning & Development, as part of its strategy to insource and “grow its own timber”.

• Further, the Commission aims to implement 70% of the approved organisational structure in 2018/19, in order to remove the capacity constraints currently experienced.

• The Commission has assessed the need for a responsive and efficient Information Technology and knowledge management system (IMS) as part of its 5-year strategy.
The implementation of a fully integrated, efficient and adequate ICT environment will be completed in 2018/19.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 63 Priority sectors for the year will be: i) ii) Food and agro-processing; Infrastructure and construction; iii) Healthcare; iv) Banking & Financial services; v) Energy; vi) Intermediate industrial inputs and; vii) Information & communication technology.
2.4 BUDGET According to the 2018 Estimates of National Expenditure, for 2018/19 the Commission has been allocated a budget of R281.8 million which the Commission’s own projected expenditure of falls short of R366.7million.
Table 25.13 Investment, Competition and Trade expenditure trends and estimates by subprogramme and economic classification Subprogramme R million Audited outcome Average growth rate (%) Average: Expen- diture/ Total (%) 2014/15 - 2017/18 Adjusted appropriation 2017/18 Medium-term expenditure estimate Average growth rate (%) Average: Expen- diture/ Total (%) 2017/18 - 2020/21 2014/15 2015/16 2016/17 2018/19 2019/20 2020/21 Details of transfers and subsidies Departmental agencies and accounts Departmental agencies (non-business entities) Current 296.4 338.8 315.7 387.5 9.3% 49.5% 419.1 450.5 475.3 7.0% 48.6% Competition Commission 188.1 231.0 208.5 258.4 11.2% 32.8% 281.8 305.6 322.4 7.7% 32.8% Competition Tribunal International Trade Administration Commission 19.9 88.4 19.1 88.7 20.1 87.0 Source: National Treasury 30.0 14.7% 3.3% 35.1 37.1 39.1 9.2% 4.0% 99.1 3.9% 13.4% 102.2 107.9 113.8 4.7% 11.9% The financial resources have been allocated to ensure that the Commission could focus on the identified strategic areas.
As is customary, financial revisions are done during the financial year, and any adjustments are effected accordingly.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 64 [Tuesday, 8 May 2018 2.5 RECOMMENDATIONS Following the deliberations, the Portfolio Committee on Economic Development recommends that the Executive Authority and Accounting Officer (s) ensure that: 1.
The review of the organisational structure at the Commission is supported and prioritised as the work of the organisation increases, taking into consideration the additional responsibilities that will be brought about by the envisaged amendments to the Competition Act.

2.

The focus on public interest issues, particularly employment, is intensified.

3.
3.

The Commission utilises the allocated funds to speed up the training and up skilling of existing personnel, the recruitment of requisite skills, so that the need for outsourcing is phased out eventually.

The Commission must report on progress in this regard, bi-annually.

4.
4.

The Commission introduces a special internship programme for black law graduates who are not currently employed, to deepen the pool of skills in competition matters and develop partnerships with institutions of higher learning to strengthen the teaching of competition law.

5.

Cost containment measures are in place when undertaking market inquiries so that they remain sustainable and beneficial to the South African economy.

6.
6.

The Commission collaborates with other regulators in the various sectors to ensure that small- and medium-sized enterprises have an equitable opportunity to participate in the economy.

7.

The Commission continues with its commendable outreach plans to schools and universities in efforts to reach the previously disadvantaged, and encourage their entry into the field of competition law.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 65 8.
Bursaries and scholarships are made available to deserving students, especially in the previously disadvantaged institutions of higher learning, with the intention to recruit them on successful completion of their studies.

9.

Greater efforts are made to educate the public about the work of the Commission.

The Committee noted that processes are underway to consult stakeholders on the amendments of the Competition Act.
The amendments will be crucial in supporting the challenging work of the Commission, especially in such areas as the abuse of dominance.

The Committee will await a timely report from the Minister in this regard.

3.

COMPETITION TRIBUNAL The Competition Tribunal adjudicates competition matters, in accordance with the act and has jurisdiction throughout South Africa.

It is independent and subject to the constitution and the law.
It must be impartial and perform its functions without fear, favour or prejudice.

When a matter is referred to it in terms of the act the tribunal must: • Adjudicate complaints of prohibited conduct (Restrictive practice, Abuse of dominance) • Impose a remedy • Award costs • Grant an order for interim relief • Authorize or prohibit a large merger • Adjudicate appeals from Commission's decisions on: 1.

Intermediate mergers 2.

Exemption.


ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 66 [Tuesday, 8 May 2018 3.1 STRATEGIC FOCUS The Competition Tribunal has three broad strategic objectives, namely; • Ensuring effective and efficient adjudication: The Tribunal reports that matters brought before Tribunal were heard within adopted delivery time frames; which saw the expeditious conclusion of hearings, and an improved management of Information.
On Large, Intermediate and smaller Merger Targets, 75% was the proportion of large mergers to be set down within 10 business days of filing (Merger Target).

• Building and developing effective stakeholder relationships: Includes having 95% of final merger decisions to be issued to the press within two business days of the order date, and 90% of the final prohibited practice decisions to be issued to the press within two business days of the order date.
This objective also constituted of revamping the website; the implementation of a Youth Education drive, as well as a successful Learner Programme.
• Adherence to good corporate governance and sound business practice: translates to the maintenance of an unqualified audit outcome year on year 3.2 Alignment of Tribunal’s strategic objectives National Strategic Outcomes (NSO) as follows NSO 4: Decent employment through inclusive growth NSO 6: Efficient, competitive and responsive infrastructure network NSO 12: Efficient, effective and development orientated public service and an empowered, fair and inclusive citizenship.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 3.3 FINANCIAL OVERVIEW 67 The table below presents the Competition Tribunal’s Financial Overview: Year Total budget requirement Expected MTEF allocation Expected filing fees from Commission Other Income Use of accumulated surplus Additional funding requirements (in R’m) (in R’ m) (in R’ m) (in R’ m) (in R’ m) (in R’ m) 2017/2018 52.22 30.04 13.44 0.91 7.83 2018/2019 56.27 35.09 18.57 0.88 1.73 2019/2020 60.44 37.05 18.57 0.00 2.99 2020/2021 63.19 39.09 18.57 0.00 0.00 Source: Competition Tribunal 0 0 1.83 6.03 3.4 FINANCIAL OVERVIEW PER STRATEGIC OBJECTIVES The table below presents the Competition Tribunal’s financial overview per Strategic Objective: Category Objective Amount Timeous hearings and issuing of judgements Adjudication process R23 310 151.72 Effective business processes Adjudication process Stakeholder awareness Effective Stakeholder Communication Effective oversight and governance Accountable, transparent and sustainable entity R2 346 999.58 R1 152 965.92 R3 841 871.41 ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 68 [Tuesday, 8 May 2018 Effective financial management Accountable, transparent and sustainable entity Sustainable capacity Accountable, transparent and sustainable entity Administration (incl.
depreciation) Administrating the Competition Appeal Court Capital expenditure TOTAL BUDGET Source: Competition Tribunal R2 159 152.62 R3 039 301.35 R10 543 015.66 R628 913.45 R1 184 098.32 R48 206 470.03 3.5 RECOMMENDATIONS Following the deliberations, the Portfolio Committee on Economic Development recommends that the Executive Authority and Accounting Officer (s) ensure that: 1.
There is a review of the functioning and/or structure of the Tribunal (which may include the creation of new posts) so as to address capacity constraints, considering especially, the increasing workload of the Tribunal and the provisions of the Competition Act.

A progress report must be submitted to the Committee on a six-monthly basis.

2.
2.

The Tribunal continues with its commendable outreach plans to schools and universities in efforts to reach the previously disadvantaged, and encourage their entry into the field of competition law.

3.

Bursaries and scholarships are made available to deserving students, especially in the previously disadvantaged institutions of higher learning, with the intention to recruit them on successful completion of their studies.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 69 4.

THE INTERNATIONAL TRADE ADMINISTRATION COMMISSION (ITAC) The International Trade Administration Commission (ITAC) is a schedule 3A Public Entity.

It was established in terms of the International Trade Administration (ITA) Act, No 71 of 2002, and came into force on 1 June 2003.

ITAC replaced its predecessor, the Board of Tariffs and Trade (BTT) which was established in 1986.
The predecessor of the BTT is the Board on Trade and Industries (BTI) which dated back to 1924.
The aim of ITAC, as stated in the Act, is to; • Foster economic growth and development in order to raise incomes; • Promote investment and employment in South Africa; and • Promote investment and employment within the Common Customs Union Area by establishing an efficient and effective system for the administration of international trade subject to this Act and the Southern African Customs Union (SACU) Agreement.
The core functions of ITAC are: • Customs tariff investigations; • Trade remedies; and • Import and export control.

ITAC used to fall within the purview of the Department of Trade and Industry which is for trade and industrial policy.

The administration of the ITA Act was transferred to the Minister of Economic Development (Policy and Oversight) in 2009, except for decision making powers on individual tariff and trade remedy investigations that have been retained by the Minister of Trade and Industry.
ITAC now accounts to EDD on policy matters but the DTI considers recommendations on tariff applications.

The Commission is constituted of 2 Full- time Commissioners (Chief Commissioner and Deputy Chief Commissioner).

The Chief Commissioner is supported by ten part-time Commissioners.
There are four Senior ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 70 [Tuesday, 8 May 2018 Managers (Technical Advisory Services, Legal Services, Internal Audit and Policy and Research) one Chief Economist (Trade and Economic Analysis) and one General Manager (Corporate Services) who report directly to the Chief Commissioner.
There are various units within ITAC; the Tariff Investigations Unit, (tariff investigations are divided into two groups: agro-processing, chemicals, textiles, clothing and footwear), and motors, metals and machinery, Trade Remedies Unit and; Import and Export Control Unit.
4.1 STRATEGIC OBJECTIVES The organisation’s Key Strategic Objectives are: • Ensure contribution to employment creating growth and development through effective delivery of international trade instruments; • Ensure strategic alignment and continued relevance with the Economic Development Department and national agenda; • Ensure organisational efficiency and effectiveness of ITAC.
4.2 KEY HIGHLIGHTS OF THE 2018/19 ANNUAL PERFOMANCE PLAN The following are the priority projects for the 2018/19 financial year: • The review of the ITA Amendment Bill; • Finalising the Review of Anti-Dumping Regulations; • Strengthening Reciprocal Commitments and • Impact Assessments.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 71 The following are key highlights of the update reports of Annual Performance Plan for the period: • Trade Remedy Investigations: There are three trade remedy instruments: anti-dumping duties, countervailing duties, and safeguard measures.

Of these three, anti-dumping is the most frequently invoked, both globally and in South Africa.
• Update on Steel Investigations: - In the year 2015 ITAC conducted ten investigations to increase Most Favoured Nation (MFN) tariffs rates from zero to 10% based on applications by AMSA and one additional investigation by Evraz Highveld Steel and Vanadium.

- The ten tariff investigations in respect of AMSA covered: - galvanised/coated and painted steel; tin plate; wire rod; rebar; semi-finished products of iron or non- alloy steel; steel plate; cold rolled; sections; other bars and rods; and hot rolled.
- The one tariff investigation with regards to Evraz was on structural steel.

- Two safeguard investigations were initiated on Hot Rolled & Cold Rolled steel.

- On 22 August 2016 an investigation was self-initiated by ITAC to look at a possible increase in tariffs on a number of downstream products.

- These investigations take place in the context of tough global and domestic economic conditions that have seen ITAC having to exercise flexibility and pragmatism in response to real economic needs.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 72 [Tuesday, 8 May 2018 - The guiding principle in these investigations has been to ensure economic viability, sustainability of production, investment and jobs in the whole steel industry value chain.

In other words, SA needs both the upstream and the downstream.

• Steel Committee The Minister of Economic Development established the Committee of the Commission on Steel in terms of section 14 of the ITA Act, 2002, on 10 June 2016.
The purpose is to monitor the impact of changes in import tariffs; reciprocal commitments made by the applicants; jobs in the whole value chain; and import and export trends.

The Committee makes recommendations to the Commission.

The Committee’s membership constitutes the commissioners and industry representatives.

The Department of Trade and Industry and EDD officials attend and participate in the Committee.

It is only the component of Commissioners that has decision-making powers.
The Committee has been established for a period of five years.

The Committee shall report to the Commission at least by-annually and its first report to the Commission was made in December 2016.Its first meeting was held on 20th June 2016 in which among others presentations were made by the primary industry (and downstream and the second meeting was held on 28th July in which presentations were made by NUMSA and Solidarity and continues to meet and engage all the relevant stakeholders.
• Poultry Tariff Regime: Import Tariffs on poultry meat were increased towards the end of 2013.The increases were based on an application brought by SAPA on behalf of: Rainbow Farms Ltd; Astral Operations Ltd; Sovereign Food Investments Ltd; AFGRI Poultry Ltd; and Supreme Poultry Ltd (Country Bird Holdings).
Import and Export Control: Minerals beneficiation has been identified as one of the areas where jobs will be created and this has meant an alignment of ITAC’s export control measures to give support to beneficiation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 73 • Impact Assessments: To ensure continued relevance and alignment to both the dti and EDD, the Commission has begun to gauge the performance of the beneficiaries of its instruments against the policy objectives set out in the New Growth Path, Industrial Policy Action Plan as well as the Trade Policy Strategic Framework.
• Judicial Reviews: In respect of court cases, ITAC appeared in domestic courts 28 times since its establishment in 2003.Out of the 28 cases, 20 were ruled in favour and 8 against ITAC (the eight were mostly in the early days of ITAC).

4.3 BUDGET ITAC’s grant from National Treasury over the past 3 years increased (on average) by 4.7% annually, while employee related costs increased (on average) by 7% annually as per the previous multi-year salary adjustment agreement.
Rental costs increased by 56% in 15/16, and by 10% annually from then.

During the 2014 MTEF period, ITAC’s baseline budget for 2015/16 and 2016/17 financial years was reduced by R4.8 million and R7.3 million respectively, resulting in a total reduction of R12.1 million.

The shortfall caused by that reduction was financed from ITAC’s accumulated surpluses, which are now depleted.

ITAC’s budget allocation was further reduced during the 2018 MTEF period by R8.3 million.
The total budget for the 2018/19 financial year amounts to R104 million.

For the 2018/19 financial year, employee related costs account for 90% of the total budget and ITAC anticipates a shortfall of R3.3m.

Over the past years, other operating expenditure such as office rent and legal fees have increased significantly.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 74 [Tuesday, 8 May 2018 Table 25.13 Investment, Competition and Trade expenditure trends and estimates by subprogramme and economic classification Subprogramme R million Audited outcome Average growth rate (%) Average: Expen- diture/ Total (%) 2014/15 - 2017/18 Adjusted appropriation 2017/18 Medium-term expenditure estimate Average growth rate (%) Average: Expen- diture/ Total (%) 2017/18 - 2020/21 2014/15 2015/16 2016/17 2018/19 2019/20 2020/21 Details of transfers and subsidies Departmental agencies and accounts Departmental agencies (non-business entities) Current 296.4 338.8 315.7 387.5 9.3% 49.5% 419.1 450.5 475.3 7.0% 48.6% Competition Commission 188.1 231.0 208.5 258.4 11.2% 32.8% 281.8 305.6 322.4 Competition Tribunal International Trade Administration Commission 19.9 88.4 19.1 88.7 20.1 87.0 30.0 99.1 14.7% 3.3% 35.1 37.1 39.1 3.9% 13.4% 102.2 107.9 113.8 7.7% 9.2% 4.7% 32.8% 4.0% 11.9% Source: National Treasury 4.4 RECOMMENDATIONS Following the deliberations, Portfolio Committee on Economic Development recommends that the Executive Authority and Accounting Officer (s) ensure that: 1.
The presentation of the organisational plan is clearly understood both in context and content.

The explanatory notes presented by the Commission to the Committee on 24 April 2018 are attached as an addendum to the official documents tabled by the Minister.

2.
2.

Reasonable progress is made with regards to the review of the organisation’s human resource structure, so as to cater for the increasing demands of the organisation’s work, taking into consideration the envisaged amendments to the ITA Act as well as the fiscal constraints in the National Budget.

3.
3.

The review of the Safeguard Guidelines in line with the relevant Economic Partnership Agreements (EPAs) and the impact study on the Price Preference System is prioritised by all stakeholders so as to ensure certainty in the sector.

Progress reports must be sent to the Committee on a quarterly basis.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 75 4.
Intensify the process of designing mechanisms for the monitoring of all reciprocal commitments made in the steel and other industries.

5.
CONCLUSION The Portfolio Committee would like to thank Minister Patel and Deputy Minister Masuku; former Directors-General, the Acting Director-General Dr Monde Tom and the staff at the Department; the collective leadership of the entities in particular the board and Chief Executive Officer of the IDC for their sterling work, the Chairpersons, Chief Commissioners (their deputies and commissioners) of the competition authorities and ITAC, for their efforts in accelerating economic transformation for the betterment of the lives of our people.
The Committee thus recommends, that the National Assembly approves the following: 1.

The implementation of the Strategic Plan and APP (2015/16 – 2019/20) of both the Economic Development Department and the entities 2.

The budget as allocated and; 3.

The observations and recommendations of the Committee.

Report to be considered.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 76 [Tuesday, 8 May 2018 4.
Report of the Portfolio Committee on Justice and Correctional Services on Budget Vote 21: Justice and Constitutional Development, dated 8 May 2018 The Portfolio Committee on Justice and Correctional Services, having considered Budget Vote 21: Justice and Constitutional Development, reports as follows: 1.

Introduction 1.1.
The Budget Vote 21: Justice and Constitutional Development continues to comprise of five programmes, as well as a direct charge for Magistrates’ salaries: • The Department of Justice and Constitutional Development (the Department) is responsible for the Administration, Court Services, State Legal Services and National Prosecuting Authority (NPA) programmes, as well as for the Justice Modernisation subprogramme under Programme 5: Auxiliary and Associated Services, which funds the implementation of Information Technology (IT) infrastructure for the Department and distributes earmarked funds for JCPS Cluster projects as part of the Integrated Justice System (IJS).
• Section 39 of the Protection of Personal Information Act, 2013, (POPIA) establishes an Information Regulator as an independent juristic person that is accountable to the National Assembly.

Towards the end of 2016, the Members of the Regulator were appointed.

At present, until it becomes fully operational, the Regulator receives its allocation under the State Legal Services programme.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 77 • Programme 5 also contains allocations to various auxiliary services, including transfer payments to: Legal Aid South Africa and the Special Investigating Unit (SIU); and to two State Institutions Supporting Constitutional Democracy – the South African Human Rights Commission (SAHRC) and the Public Protector (PP).

2.

Method 2.1.
2.

Method 2.1.

The Department of Justice and Constitutional Development, Information Regulator, Legal Aid South Africa, the Special Investigating Unit, the South African Human Rights Commission and the Public Protector each presented their revised strategic plans (where applicable), annual performance plans for 2018/19 and budgets for the 2018 MTEF.

2.2.

The briefings took place as follows: • Public Protector – 17 April 2018.
• Minister of Justice and Correctional Services and the Department of Justice and Constitutional Development – 18 April 2018.

• South African Human Rights Commission – 19 April 2018.

• Legal Aid South Africa – 24 April 2018.

• Information Regulator – 24 April 2018.

• National Prosecuting Authority – 24 April 2018.

• Special Investigating Unit – 25 April 2018.

2.3.

All presentations can be obtained from the Committee Secretary.

3.

Fiscal environment 3.1.


Planning and budgeting takes place within a context of fiscal austerity, requiring the appropriate balance between vast service delivery needs, and the need to manage government’s finances prudently.
To fund a revenue shortfall and, in addition, fee-free higher education and training for students from households with an ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 78 [Tuesday, 8 May 2018 income of less than R350 000, and to increase subsidies to higher education and training institutions, the application of stringent expenditure controls has intensified.
In all, baseline cuts over the medium term amount to R85.7 billion, of which R53.5 billion is at the level of national government, including large programmes and transfers to public entities.

This has meant that spending plans have needed to be revised, as the only ‘additional’ funds available are those that can be realised by reductions elsewhere.

3.2.

In 2016, the compensation ceilings of national and provincial departments were reduced by R10 billion in 2017/18 and R15 billion in 2018/19.
This has led to a decline in the growth of the total national and provincial public sector headcount.

3.3.

The consolidated budget for the peace and security function accounts for R199.8 billion in 2018/19; R212.6 billion in 2019/2020; and R 221.8 billion in 2020/21.

The allocation to this function declines over the MTEF by R16.8 billion, from R655.6 billion to R639.2 billion.

3.4.
3.4.

In 2018/19, of the overall allocation for Peace and Security, approximately 9.7% goes to Justice and Constitutional Development and 1.1% to the Office of the Chief Justice and Judicial Administration (including magistrates and judges’ salaries).
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 79 Table 1: Spending on Public Order and Defence 2018/19 Peace and Security 2017/18 % of Public 2018/19 (R’ billion) Order and Defence Spending % of Public Order and Defence spending Justice and Constitutional 18.9 9.6 19.3 9.7 Development Office of the Chief Justice 2 1.0 2.1 1.1 and Judicial Administration Correctional Services Police Independent Police Investigative Directorate 22.8 87 0.25 11.6 44.4 0.13 23.8 91.8 0.3 12.2 46.0 0.15 Defence and Military 48.6 24.8 47.9 24.0 Veterans Home Affairs 7 Total (including Direct 196.0 Transfer: Magistrates and Judges’ salaries) 3.6 - 7.9 199.8 4.0 - 4.
Budgetary Review and Recommendation Report (BRRR) October 2017 and Minister of Finance’s response 4.1.

In its Budgetary Review and Recommendation Report (October 2017), the Committee recommended that additional funding be allocated to: ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 80 [Tuesday, 8 May 2018 • The Office of the Chief Justice for the operationalisation of the Mpumalanga High Court and for additional capacity to Judges Presidents for judicial functions.
• The Department for the shortfall in the compensation of employees and infrastructure’ budgets.

• The NPA for the shortfall in its compensation of employees’ budget; to fill vacancies; to create capacity in new courts; and to resume the aspirant prosecutor programme.

• Legal Aid South Africa, so that it would not have to cut posts and to ensure that it can maintain its civil work.
The Committee also recommended that the funding presently allocated by the Department of Rural Development and Land Reform to a private firm of attorneys to provide representation in land-related matters be transferred to Legal Aid SA.

• The SAHRC for its monitoring obligations in respect of court orders.

• The PP to stabilise its financial health; for more investigative capacity; and for (increased) litigation costs.

4.2.
4.2.

The Minister of Finance’s response was to advise that, due to the constrained fiscal outlook, the scope to provide additional funding is limited.

Departments, entities and constitutional institutions are required to reprioritise funds within their existing baselines to fund any emerging priorities.

4.3.

The constrained fiscal outlook has resulted in the Vote’s baseline decreasing by R2 billion over the MTEF (R643 million in 2018/19; R667 million in 2019/20; and R705 million in 2020/21).
The baseline reduction for 2018/19 is made up as follows: R200 million from Court Services; R43.7 million from the Administration programme; R49 million from State Legal Services; R200 million from the NPA; and R92.8 million from Legal Aid SA.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 81 5.

Overview of Vote 21: Justice and Constitutional Development 5.1.
The overall allocation to the Justice and Constitutional Development Vote (Vote 21) for 2018/19 is R19.3 billion (compared with R18.9 billion in 2017/18 and R17.9 billion in 2016/17), including Magistrates’ salaries.

Over the medium term, the allocation increases to R21.9 billion in 2020/21.

5.2.

In 2018/19, the total for programmes (excluding the direct charge for magistrates’ salaries) is R17.1 billion (compared with R16.8 billion in 2017/18).
Table 2: Vote 21 - Justice and Constitutional Development – Allocation for the 2018 MTEF per programme Programme (R ‘million) Administration Court Services State Legal Services National Prosecuting Authority Budget 2018 MTEF 2017/18 2018/19 2019/20 2020/ Auxiliary and Associated 3 478.8 3 587.6 3 777.0 3 985.0 Services TOTAL Magistrates’ Salaries TOTAL 16 786.8 2 040.5 18 827.3 17 049.4 18 182.7 2 215.5 2 383.7 19 265.0 20 566.4 19 374.1 2 560.2 21 934.4 5.3.
However, in real terms, the allocation to the Vote has once again decreased (by 3%).

(In 2017/18, the allocation decreased by -1.36% in real terms).

5.4.

In 2018/19, R41.8 million is reprioritised from unfilled Magistrates’ posts to operationalise the Mpumalanga High Court.

Over the medium term, an additional R79.4 million is reprioritised to the Office of the Chief Justice also for operational costs at the Mpumalanga High Court.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 82 [Tuesday, 8 May 2018 5.5.

In line with the commitment to reduce the headcount in the Public Service, personnel numbers for the Vote are expected to decrease from 24 094 in 2017/18 to 23 888 in 2020/21.

6.

Policy developments 6.1.

The National Development Plan (NDP) requires, among others, that we build safer communities; promote accountability and fight corruption; and strengthen judicial governance and the rule of law.

6.2.
6.2.

This is the last year for the present Administration to deliver in terms of the Medium Term Strategic Framework (MTSF) 2014- 2019.

Therefore, annual planning for 2018/19 is largely concerned with consolidation of policies and legislation, and effective implementation of programmes aimed at responding to Government’s programme of Action.

6.3.

In this year’s State of the Nation Address (SONA), the following was highlighted: • The need to reinforce a commitment to ethical behaviour and leadership.
• The plunder of public resources will not be tolerated and corruption, fraud and collusion in the private sector will be fought with a similar intensity.

• The Commission of Inquiry into State Capture will be established to identify wrongdoers to restore public confidence in government.

• Law enforcement institutions should be strengthened and shielded from interference in carrying out the investigation and prosecution of all acts of corruption.
• The leadership issues at the NPA will be attended to urgently to ensure that the institution is stabilised and able to perform its duties without fear, favour or prejudice.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 83 6.4.

On 18 March 2018, the Minister of Justice and Correctional Services presented an overview that reflected on the work undertaken in the past year (2017/18), as well as plans for 2018/19.
To achieve its intention to deliver justice to all, the Department has placed considerable focus on transformation of the justice system in its entirety and of the legal profession as well.

Priorities for the year ahead, therefore, include: • Finalising a policy to address the constitutional imperative of a single, integrated judicial system by migrating the administration of the Lower Courts to the Office of the Chief Justice.
• Finalising a policy relating to judicial governance and court administration, which will be submitted to Cabinet for consideration.

• The systematic development of a new body of law that is steeped in constitutional values as part of the Renaissance Project.

• Overhauling the Magistrate’s Courts Act, 1944, as part of the Department’s broader transformation agenda.
• Developing a policy and legislative framework for community courts and for the best use of community advice offices, as mechanisms that will enhance access to justice.

• Continuing to establish dedicated sexual offences courts that meet the blueprint approved for these courts in 2013.

In addition, intermediaries and court preparation officers will continue to be appointed to improve the services for victims of sexual offences.
• Upgrading 45 regional courts including their security, ICT platforms and other enablers, to enhance efficiency.

• Continuing the process of aligning court jurisdictional boundaries with that of the applicable municipal and provincial boundaries.

Rollout to the Western Cape is targeted for 2018/19.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 84 [Tuesday, 8 May 2018 • Continuing to build, upgrade and maintain the court infrastructure.
The construction of the Mpumalanga High Court is almost complete and there are plans to expand the Durban High Court.

New Magistrates’ courts in Plettenberg Bay, Booysens and Dimbaza are to be completed this year as well.

Improving the various family law services provided at Magistrates’ Courts.

Investigating the regulation of Alternative Dispute • • Resolution Mechanisms (ADRM).

• Drafting an accountability structure as envisaged in section 22(5) of the National Prosecuting Authority Act, 1998.
• Ensuring the necessary infrastructure for the Commission of Inquiry into State Capture, Corruption and Fraud in the Public Sector, including organs of state, to be able to perform its functions.

7.

Spending priorities for the 2018 MTEF 7.1.

The following is prioritised: • The Justice Department’s work is closely aligned with the NDP’s vision that by 2030, all South Africans should feel safe, and similarly with Outcome 3 ‘All people in South Africa are and feel safe’.
Over the medium term, the Departments intends to strengthen efforts to transform the justice system by: developing and implementing policies that will bring about improved access to justice; improving the efficiency of the criminal justice system; strengthening the capacity of the State to manage litigation; and protecting vulnerable groups.

• As the delivery of justice services is labour intensive, spending on compensation of employees remains the Department’s main cost driver.
Still, the number of Justice officials is expected to decrease by 206 over the MTEF in line with the expenditure ceiling for this item.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 85 A review committee has been established to consider the filling of critical posts.

• The construction of the Mpumalanga High Court is expected to be completed this year at an estimated cost of R1.2 billion.
To operationalise this court, R41.8 million is reprioritised over the MTEF period to fund prosecutorial capacity and legal defenders at that court.

In addition, R79.4 million is transferred to the Office of the Chief Justice over the medium term for judicial appointments.

A further R36 million is reprioritised for consequential costs arising from the appointments.

• The Department leads the Integrated Justice System (IJS) the JCPS Cluster.
There has been programme for significant progress in recent years in developing systems and also establishing connectivity to share docket and case information between JCPS Cluster departments.

A Digital Transformation Strategy was prepared in 2017/18 outlining several initiatives to modernise the criminal justice system through technology solutions.

The Strategy will drive spending in the Auxiliary and Associated Services: Justice Modernisation sub-programme.
• Transformation of State Legal Services requires the finalisation of policies aimed at lowering the cost of litigation, establishing capacity to handle complex legal matters and ensuring that the Office of the State Attorney is run efficiently.

Activities related to this transformation project are funded through the State Legal Services programme.

• The Department remains committed to combatting racism and xenophobia and protecting vulnerable groups.
The National Action Plan is expected to be submitted to Cabinet for approval in 2018/19.

Various awareness campaigns will be conducted over the medium term and this will result in increased expenditure under the State Legal Services: Constitutional Development sub- programme of the State Legal Services programme.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 86 [Tuesday, 8 May 2018 8.

Department of Justice and Constitutional Development 8.1.
The Department has aligned its plans with the NDP to address, in particular, chapters 12 (Building safer communities) and 14 (Promoting accountability and fighting corruption).

The Department also has a role to play in implementing chapters 11 (Social protection), 13 (Building a capable state) and 15 (Transforming society and uniting the country).

8.2.
8.2.

The Department continues to focus on the following four transformational themes adopted in the 2017/18 planning cycle: • The transformation of the legal profession and mechanism for access to justice for all.

• The transformation of State Legal Services.

• The transformation of the criminal justice system and restoring public confidence.

• Entity oversight and institutional arrangements.

8.3.
8.3.

The allocation to programmes that are administered by the Department (including the NPA and the Justice Modernisation sub-programme under Auxiliary and Associated Services) in 2018/19 is R15.5 billion.

The bulk of projected spending remains directed towards Court Services, which is allocated R6.4 billion in 2018/19.

The NPA receives the next largest allocation of R3.6 billion in 2018/19.

8.4.
8.4.

In terms of economic classification, projected spending on compensation of employees remains the biggest cost driver.

An amount of R11.9 billion is allocated for the salaries of 23 603 employees, including 4 425 NPA staff and 1 926 magistrates in 2018/19.

On average, over the medium term, this item accounts for 64% of projected expenditure.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 87 8.5.
In 2018/19, R820 million is allocated for Building and other fixed structures.

The building of new courts remains a core element in the Department’s efforts to improve access to justice.

The building of the Mpumalanga High Court at Nelspruit is expected to be completed in 2018/19 so that every province has its own High Court.

The total cost for this project is estimated at R1.2 billion (from an estimated R945.8 million in 2017/18).
Magistrates’ courts also prioritised for completion are Plettenberg Bay, Dimbaza, and Johannesburg (Booysens Magistrates’ Court).

Additional planned projects for the outer years are on hold.

The Department has assisted the Department of Public Works, which is responsible for planned maintenance of buildings, with funding until now but is unable to do so going forward.

9.

Department of Justice and Constitutional Development: Programmes 9.1.

Programme 1: Administration 9.1.1.


The Administration programme is allocated R2.1 billion for 2018/19, compared to R1.8 billion in 2017/18 (for the Ministry, Management, Corporate Services, Financial Administration, Internal Audit and Office Accommodation subprogrammes).
Although, overall, the programme receives a real percentage increase of 12.3% from 2017/18, it is only the allocation to the Office Accommodation subprogramme that increases (by 32.7% or R303.5 million); all other subprogrammes within Administration experience significant decreases in their allocated funds.

9.1.2.

The purpose of this programme is to provide strategic leadership, management and support services to the Department.

9.1.3.
9.1.3.

The Department has revised the strategic objectives for the programme.

In addition to a focus on achieving and sustaining an unqualified audit opinion, the strategic objective ‘Increased number of public bodies compliant with PAIA’ was (re) introduced.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 88 [Tuesday, 8 May 2018 9.2.

Programme 2: Court Services 9.2.1.


The Court Services programme facilitates the resolution of criminal, and civil cases, and family law disputes, by providing accessible, efficient and quality administrative support to the courts and to manage court facilities.

9.2.2.
9.2.2.

Court Services is allocated R6.4 billion for 2018/19 compared with R6.6 billion in 2017/18 (for the Lower Courts, Family Advocate, Magistrates Commission, Government Motor Transport, Facilities Management and Administration of Lower Courts sub-programmes).

This programme decreases in real terms by -7.5% from 2017/18.

9.2.3.
9.2.3.

The reduced allocation to Court Services affects the Lower Courts and Facilities Management subprogrammes particularly: • The allocation to the Lower Courts subprogramme decreases in real terms by -3.9%.

This is the third year of real negative growth.

The Lower Courts subprogramme funds the activities and operations of more than 2 147 courtrooms across the country.

• Facilities Management experiences a real decrease of - 26.9%.
This is the second year that Facilities Management has a negative real growth.

9.2.4.

The strategic objectives for this programme are to: • Ensure an efficient and effective integrated criminal justice system that enhances public confidence in the criminal justice system.

• Ensure an enhanced victim-centric criminal justice system.

• Ensure an enhanced and integrated family law services.

• Increase access to courts by historically marginalised communities.
• Ensure an efficient and effective civil justice system.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 89 • Enhance the transformation of the South African legal system.

9.2.5.

A number of performance indicators have been removed: • Number of backlog courts converted to permanent courts.

• Percentage of unopposed taxations processed within 14 working days from the date of set down.

• Number of divisions of the High Court aligned with provincial boundaries.
• Percentage of integrated family law matters finalised.

9.2.6.

A number of new performance indicators have been introduced: • Case management system for appeals and reviews rolled out by target date (31 January 2019).

• Number of recorded ‘unreturned” criminal cases updated on the Integrated Case Management System (ICMS): Criminal (<1 800).

• An Integrated Criminal Justice Strategy submitted to Cabinet for approval by target date (28 February 2019).
• Number of closed circuit television systems in regional courts upgraded in line with minimum standards to the Sexual Offences Court Model (45).

• Phases of Femicide Watch established as recommended by the United Nations by target date (Phase 1 by 31 March 2019).

• Number of children who benefit from family law matters (22 500).

• Percentage of all recorded convictions validated on the NSRO (50%).

• Percentage of litigation matters finalised (50%).
• Percentage of non-litigation matters finalised within 6 months from date matter was opened (50%).

• Blueprint on community courts approved by Minister by target date (28 February 2019).

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 90 [Tuesday, 8 May 2018 9.2.7.

The spending focus for the programme is largely on court infrastructure; implementation of legislation; medical services for psychiatric observation; and security services for courts.

9.3.

Programme 3: State Legal Services 9.3.1.


The State Legal Services programme is allocated R1.25 billion in 2018/19, compared to R1.23 billion in 2017/18 (for the State Law Advisers, Litigation and Legal Services, Legislative Development and Law Reform, Master of the High Court and Constitutional Development subprogrammes).

The allocation to the programme decreases in real terms by -3.4% from 2017/18.

9.3.2.
9.3.2.

The programme provides legal and legislative services to organs of State; supervises the administration of deceased and insolvent estates, the liquidation of juristic persons and registration of trusts; manages the Guardian’s Fund; facilitates constitutional development; and undertakes research.

9.3.3.

The strategic objectives for this programme have been revised as follows • Legal costs paid by the State reduced.
• Implementation of the Truth and Reconciliation Commission (TRC) recommendations, as approved by Parliament, for the purpose of contributing to healing the wounds of the past and restoring human dignity.

9.3.4.

A number of performance indicators have been removed: • Number of cases handled by the Master of the High Court.

• Number of projects implemented to transform State Legal Services.

• Legal Practice Council established by target date.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 91 • Legal Practice Regulations published in Government Gazette.

• Legal Practice Council members appointed by target date.

• Transfer of assets from Law Societies.

• Number of socio-economic impact assessments submitted to DPME for sign-off.

9.3.5.
9.3.5.

The following new performance indicators are introduced: • Jurisdiction of Masters’ service points increased (Paperless estate Administration (PEAS) rolled out to 30 service points.

MOVIT (Masters Own Verification Identity Technology rolled out to 15 service points).

• Number of Previously Disadvantaged Individuals (PDI) advocates briefed (1 200).

• Percentage value of briefs allocated to female counsel (27%).
• National Action Plan to Combat Racism, Racial Discrimination, Xenophobia and Related Intolerance finalised and submitted to Cabinet by target date (31 December 2018).

• Number of community rehabilitation projects handed over to communities in line with TRC recommendations (Five projects to be launched and handed over to communities from 2019/2020).

9.3.6.

The spending focus for the programme is largely on employee compensation; legal costs and claims against the State.
Further, funding has been set aside to establish the Information Regulator (R25 million in 2017/18; R27 million in 2018/19 and R28 million in 2019/20).

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 92 [Tuesday, 8 May 2018 9.4.

Programme 3: Information Regulator 9.4.1.


The Protection of Personal Information Act, 2013, (POPIA) regulates the processing of personal information by providing a framework that sets out the minimum standards that responsible parties must comply with when processing personal information.

The Act applies to public and private bodies, including juristic persons, and aims to achieve a balance between the free-flow of information and the right to privacy.

9.4.2.
9.4.2.

The Information Regulator is established in terms of section 39 of POPIA and has a wide range of powers and functions regarding promoting and enforcing the right to privacy.

9.4.3.

POPIA also transfers certain key responsibilities concerning the Promotion of Access to Information Act, 2000, (PAIA) to the Information Regulator.

These include the handling of complaints, conducting investigations, and making assessments about compliance by public and private bodies.

9.4.4.
9.4.4.

At present, only those parts of the Act relating to the establishment of the Regulator are operational.

Only when the Regulator has reached a stage of operational readiness will the remaining provisions come into force.

9.4.5.
9.4.5.

Since the Members of the Information Regulator took office on 1 December 2016, the Regulator has: • Engaged with various stakeholders on areas of mutual interest; provided training on POPIA to a number of bodies; and interacted with and hosted a number of international stakeholders.

• Engaged in litigation, having been cited as a Respondent in the Constitutional Court case of Black Sash Trust v Minister of Social Development and Others.
The ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 93 Regulator provided an explanatory affidavit clarifying that the personal information of grant beneficiaries belongs to them and could never vest in a third party.

The Regulator has been monitoring the implementation of the court order regarding the protection of personal information of the grant beneficiaries.

A series of meetings were convened with the relevant stakeholders.
The Regulator has submitted two reports this year to the Independent Panel of Experts in fulfilment of its monitoring obligations.

• Received approximately 180 complaints, although it is not yet operational.

Many of these are about direct marketing through unsolicited electronic communications.

• Published draft Regulations for public comment in September 2017.

The submissions have been considered and, where possible, included.
The final draft Regulations have been submitted to the Office of the State Law Advisors to be vetted for constitutional compliance and will be tabled in Parliament once the vetting process is completed.
• Dealt with queries/complaints relating to a number of material data breaches, including the Master Deeds, Facebook, and MiWay matters; and advised on the processing of personal information in the Voter’s Roll; and has engaged Senior Counsel to provide an opinion on whether unsolicited direct marketing by political parties is direct marketing as defined.

9.4.6.

The Information Regulator is allocated R27 million in 2018/19, R29 million in 2019/20 and R30 million in 2020/21 for its establishment.

9.4.7.
9.4.7.

The Information Regulator has massively underspent its allocated budget (At the end of December 2017, Treasury indicated that the Information Regulator had spent only ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 94 [Tuesday, 8 May 2018 R970 000 of the R25.9 million allocated to it in 2017/18).
The underspending is attributed to the delays in finalising an establishment structure for the Regulator, which also adversely affected the procurement of office furniture and equipment and related goods and services.

9.4.8.

In terms of POPIA, the Regulator has the power to determine its own administration in consultation with the Minister of Finance.

However, until its status is clarified, the organisational structure cannot be finalised.
With the assistance of the Deputy Minister of Justice, the Regulator will engage the Minister of Finance to resolve the contradiction.

At present, the Regulator has an Acting CEO and Acting Head of Legal and Compliance seconded from the Department.

9.4.9.

The Regulator occupies temporary offices at the Department’s SALU Building.

It has engaged the Department of Public Works to assist it to procure accommodation.

9.4.10.
9.4.10.

The Regulator has encountered the following challenges: • The slow pace of its establishment, which has affected the commencement of the remaining sections of POPIA.

• Delays in the finalisation of the organisational structure.

• Limited capacity and a growing workload/demand for services.

• Underspending for 2017/18.

9.5.

Programme 4: National Prosecuting Authority 9.5.1.


The NPA provides a co-ordinated prosecuting service that ensures that justice is delivered to the victims of crime through general and specialized prosecutions; removes the profit from crime; and protects certain witnesses.

The NPA also forms part of the Anti-Corruption Task.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 95 9.5.2.
The NPA has aligned its strategic objectives with the NDP, which speaks to ‘building safer communities’, as well as to Outcome 3 of the MTSF.

Notably, during SONA this year, there was a clear focus on turning the tide of corruption in our public institutions.

9.5.3.

The NPA has the following programmes: National Prosecutions Service; Asset Forfeiture Unit; Office for Witness Protection; and Support Services.

9.5.4.
9.5.4.

The NPA’s strategic objectives are as follows: • Ensure successful prosecution (NPS): To increase the conviction rate in the lower courts and high courts.

• Ensure that profit is removed from crime (AFU): To increase the number of completed forfeiture cases and increase the value of freezing orders.
• Ensure that vulnerable and intimidated witnesses and related persons are successfully protected (OWP): To ensure that no witnesses or related persons are harmed, threatened or killed while on the witness protection programme.

9.5.5.

A number of new performance indicators were introduced, placing greater emphasis on other types of crime that affect our society: • ‘Conviction rate in murder cases’ and ‘Conviction rate in money laundering’ were elevated from an operational to NPA level.
• • ‘Number of victims assisted at TCC sites’ replaces the previous indicator ‘Number of operational TCC’s’ (due to funding constraints, the number of operational TCCs is to remain at 55 nationwide).

‘Number of persons convicted of private sector corruption’ is entirely new.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 96 [Tuesday, 8 May 2018 9.5.6.

The NPA is allocated R3.6 billion for 2018/19 compared with R3.7 billion in 2017/18.

In real terms, the allocation is reduced by -6.1%.

9.5.7.
9.5.7.

As in previous years, the National Prosecutions Services sub- programme is allocated the biggest share of the funds (81%) allocated to this programme.

9.5.8.

Over the medium term, the NPA’s baseline is reduced by R611 million: R200 million in 2018/19; R200 million in 2019/20; and R211 million in 2020/21.

However, R38.5 million has been reprioritised within the Vote to appoint eight prosecutors and three administrative staff at the Mpumalanga High Court.

9.5.9.
9.5.9.

In previous years, shortfalls relating to the compensation of employees’ budget were funded through virements from the NPA’s operational budget or from the Department.

However, this year, the NPA’s operational budget is unable to accommodate any virements to the compensation of employees’ budget.

The projected shortfall for 2018/19 is R168 million, increasing to R435 million over the MTEF period.

9.5.10.

There has been a total moratorium on the filling of posts since 2015/16.
In addition, 157 and 205 officials left the NPA during 2016/17 and 2017/18, respectively.

The loss of staff has significantly increased the workload of prosecutors, which has a host of negative consequences for service delivery and for the workplace environment.

9.6.

Programme 5: Auxiliary and Associated Services 9.6.1.
The programme provides a variety of auxiliary services associated with the Department’s aims and funds transfer payment to the South Africa Human Rights Commission, the Public Protector, Legal Aid South Africa, the Special Investigation Unit and the President’s Fund.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 97 9.6.2.

The programme also contains the Justice Modernisation sub- programme.
This sub-programme contains funds for the modernisation of IT systems and for the Integrated Justice System (IJS) project on behalf of Justice Crime Prevention and Security (JCPS) Cluster departments and entities.

An amount of R976.8 million is allocated to this subprogramme in 2018/19 compared with R903.7 million in 2017/18.
This is an increase of 2.5% in real terms (compared to 2016/17 in which the allocation to the subprogramme declined in real terms by -11.3%; and to 2017/18, where the allocation once again decreased in real terms by -0.7 %.).

9.6.3.

The related strategic objective for the Justice Modernisation sub- programme is as follows: establishment of a functional, integrated electronic criminal justice system to monitor performance of the criminal justice system.

9.6.4.
9.6.4.

There are some changes to the performance indicators and targets: • The indicator ‘Number of KPI data uploaded to the IJS data warehouse’ was removed, while the target for the performance indicator ‘Number of government departments and entities exchanging information electronically’ was revised from eight (in 2017/18) to seven.

10.

Legal Aid South Africa 10.1.

Legal Aid South Africa is an autonomous statutory body established in terms of the Legal Aid South Africa Act 39 of 2014.
The main object of Legal Aid SA is to render or make available legal representation to the poor and vulnerable at State expense.

Although the main thrust of its work is to provide legal representation to criminal accused, Legal Aid SA does provide advice and representation in civil matters.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 98 [Tuesday, 8 May 2018 10.2.

Legal Aid SA receives its funding as a transfer.


The entity is allocated R1.8 billion in 2018/19, which is only slightly more than its allocation for 2017/18 of slightly less than R1.8 billion (compared to R1.7 billion in 2016/17).

The percentage change to the grant allocation is 0.6%.
Table 4: Legal Aid SA programme budget for the 2018 MTEF Subprogramme 2017/18 2018/19 2019/20 2020/21 (R’million) Legal Aid Services 1 425.8 1 444.6 1 530.3 1 601.5 Administration Special projects 310.7 50.4.3 299.9 52.9 310 55.8 326.5 59.5 TOTAL 1 786.9 1 797.3 1 896.2 1 987.5 10.3.

Although the grant allocation to Legal Aid SA was not reduced in 2017/18, it had a budget shortfall of R45 million because of the salaries budget not being fully funded.

10.4.
10.4.

However, this year, Legal Aid SA’s baseline is reduced by R92 million or 5.5%.

However, once the difference between the National Treasury Macro increase and actual cost of living increases (COLI) is taken into account, Legal Aid SA has a budget shortfall/cut of R164 million in 2018/19; R180.7 million in 2019/2020; and R221.1 million in 2020/21.

Over the medium term, Legal Aid SA will have a total budget shortfall/cut of R566 million.

10.5.
10.5.

Legal Aid SA has been able previously years to manage the shortfall by: • Downsizing the organisational structure through freezing vacant posts (110 posts in 2017/18).

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 99 • Containing the capital budget by extending the life cycle of assets (including computers and vehicles) beyond their normal life span.

• Reducing the Judicare budget.

• Reducing the operating budget.


• Reducing expenditure on performance incentive bonuses.

10.6.

In 2018/19, Legal Aid SA has further reduced expenditure on various items but will still have a shortfall of R43.8 million.

As 80% of the budget is spent on salaries, Legal Aid SA is left with no choice but to cut 97 posts, which will have the following consequences for the delivery of legal aid services: Table 5: Impact of budget reductions on posts, matters and court coverage Staff Total No.

of No.
of No.

of Court Amount category staff posts cut matters coverage saved posts 2018/19 reduced reduction (R’million) 2017/18 2018/19 2018/19 Criminal: 893 34 9 350 86% to 83% 9.3 District Court Criminal: 446 17 2 975 96% to 93% 12.8 Regional Court Criminal: 109 6 300 High Court Civil Paralegals Support Other Total 237 188 491 389 2 753 13 1 26 - 97 3 250 4 000 - - 19 875 - - - - - - 5.9 7.9 0.4 7.5 - 43.9 ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 100 [Tuesday, 8 May 2018 10.7.
Legal Aid SA will receive R3.2 million in reprioritised funding from the Department to fund one legal practitioner and one paralegal practitioner at the Mpumalanga High Court.

10.8.

The Strategic Plan 2015 – 2020 sets out the outcomes and strategies that Legal Aid SA will pursue for that period.
Legal Aid SA’s strategic outcomes for 2015-2020 are to provide quality justice for all, especially, the poor and vulnerable, and to be a respected, high performance, sustainable and accessible public entity that will have a positive impact on society, the economy and the environment.

10.9.
10.9.

The overall strategic shift in the 2015 - 2020 period focuses on increased organisational maturity, and sustainable high performance and excellence in all segments of the organisation over the next decade, positively touching the lives of many more South Africans to ensure the outcome of quality justice for all.

10.10.

Legal Aid SA’s strategic objectives are as follows: • Empowered clients and communities making informed choices about their legal rights and responsibilities.
• All poor and vulnerable persons able to access quality public funded legal services to protect or defend their rights.

• An accessible, effective, fair, independent and efficient justice system serving all in South Africa, contributing to building safer communities.

• Delivering on the constitutional and statutory shareholder mandate in an independent, accountable and sustainable manner.
• An organisation embedding sustainable practices in every segment of the organisation, to positively impact on society, the economy and the environment.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 101 • Embedding good governance, high ethical standards and integrity, high performance and accountability.

• An effective and efficient, economic and environmentally responsive supply chain management system supporting client services delivery and internal business processes.
• An appropriately resourced national footprint reaching the poor and vulnerable persons requiring legal assistance.

• An expanded and capacitated/resourced national footprint reaching the poor and vulnerable persons requiring legal assistance.

• Competent, dedicated, motivated and empowered employees capacitated to deliver the constitutional mandate and organisational strategies.
• A modern and appropriate, integrated, secure and cost- effective IT Platform supporting the provision of client services and linkages and enabling internal business needs.

10.11.
10.11.

In carrying out its mandate, Legal Aid SA continues to identify the following priority groups: children; every detained person, including sentenced prisoners; every accused person who wishes to appeal or review a court decision in a higher court; women, particularly in divorces, maintenance and domestic violence cases; and the landless, especially in eviction cases.

10.12.
10.12.

Legal Aid SA’s Annual Performance Plan 2018/19 is accompanied by a Review of the Strategic Plan, which notes the impact of the budget reductions.

10.13.

Legal Aid SA’s targets for 2018/19 have been revised downward because of the budget constraints.

Further, any proposal to increase its current responsibilities is not viable.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 102 [Tuesday, 8 May 2018 Table 6: Legal Aid SA: Selected indicators and targets Performance indicator Actual performance 2016/17 Target 2017/18 Target 2018/19 Strategic objective: Access to criminal legal aid services Court coverage: District Courts Court coverage: Regional Courts 86% 96% >83% >80% >93% >90% Court coverage: High Courts All legal aid matters covered All legal aid matters covered All legal aid matters covered Strategic objective: Access to civil legal aid services No.
of clients assisted in civil matters 58 990 46 000 42 750 Strategic objective: Legal advice No.

of clients assisted in advice matters 253 681 Call Centre: 41 777 No growth No growth but will reduce by 4000 as a result of reduction of staff 11.

Special Investigating Unit 11.1.

The legislative mandate of the Special Investigating Unit (SIU) is derived from the Special Investigating Unit and Special Tribunals Act 74 of 1996 (as amended).
Matters are referred to the SIU by way of Presidential proclamation, which sets out the scope of an investigation.

The SIU has identified a number of limitations with the present enabling legislation: • The SIU’s mandate limits it to a reactive role, as it is unable to undertake preliminary assessments of received allegations before applying to the President for a proclamation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 103 • There is no clear mandate to monitor and enforce remedial measures.

• The reporting requirements restrict reporting to specified persons, entities or state institutions.

• The SIU’s funding model is flawed.

11.2.


The SIU’s principal function is to investigate serious malpractices, maladministration and corruption in connection with the administration of state institutions, state assets and public money, as well as any conduct that may seriously harm the interests of the public.

The SIU also: • Institutes and conducts civil proceedings in any court of law or special tribunal, in its own name or on behalf of state institutions.
• Brings potential disciplinary matters to the attention of state institutions.

11.3.

The SIU has a mixed funding model that derives income from a National Treasury grant, as well as from work done for State departments.

The SIU’s projected total revenue for 2018/19 is R624.9 million, compared with R579.6 million in 2017/18.
Despite baseline reductions (R9.2 million in 2018/19; R15.8 million in 2019/20; and R16.6 million in 2020/21), the SIU’s budget increases in real terms by 2.2% compared with 2017/18.

A significant portion of the budget (R 458 million or 73%) is for salaries (The SIU has a headcount of 516 staff at present and 88 vacancies).

11.4.

The intention is to reduce the SIU’s reliance on grant income over the medium term from a baseline of 62% in 2017/18 to 56% in 2020/21.
This is reflected in a new performance indicator ‘Percentage reliance on government funding’.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 104 [Tuesday, 8 May 2018 Table 7: SIU revenue breakdown 2018 MTEF Programme Revenue Baseline grant Other Total Budget (R’ million) 2017/18 2018/19 2019/20 2020/21 283.5 346.2 22.2 651.8 244.2 357.1 23.6 624.9 276.8 371.0 25.1 672.9 304.8 391.4 26.6 722.8 11.5.

The SIU’s planning is aligned with two Government Outcomes, i.e.
Outcome 3 (South Africans are and feel safe) and Outcome 12 (Efficient, effective and development oriented state).

The Unit’s focus is on contributing significantly to the reduction of corruption and the perception of corruption.

These outcomes are linked to the vision set out in the National Development Plan (NDP), which highlights the importance of building a resilient anti-corruption system.

The SIU forms part of the Anti- Corruption Task Team (ACTT).

11.6.
11.6.

During, 2017/18, the SIU embarked on an organisational review process that has led to its 2015-2020 strategic focus being revised.

This, in turn, led to the SIU revising its ‘value chain’ and operating model to support the implementation of the revised goals, objectives and focus.

Operational changes include standardisation of service quality; enhanced case registration and monitoring; and digital transformation to provide business intelligence for proactive decision taking.
The SIU has also developed a new organisational structure to support the revised strategy.

The implementation of this structure will take place during 2018/19.

11.7.

The SIU’s revised strategic goals are to: • Enable core services to perform optimally.

• Influence proactively the systemic and behavioural root causes of maladministration and corruption.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 105 • Achieve appropriate legal outcomes against perpetrators of maladministration and corruption.

11.8.

The revised value chain introduces a number of new focus areas: • Public education services.

• Advisory services to prevent the reoccurrence of cases.

• Monitoring and evaluation of the SIU’s impact.

• Follow up and tracking of recommendations.


• Involving the Auditor-General and Executive Authorities in oversight activities.

11.9.

The 2018/19 Annual Performance Plan (APP) focuses on ensuring that the SIU plays a more proactive role and takes greater preventative measure to address maladministration and corruption.

11.10.
11.10.

The APP, introduces a new programme – ‘Market data analytics and prevention’ in addition to the ‘Administration’ and ‘Investigations and Legal Counsel’ programmes with significant changes to the strategic objectives and performance indicators: 11.10.1.
The new objectives and indicators for the Administration programme are as follows: Table 8: SIU Administration programme – selected objectives, indicators and targets 2018/19 Strategic objective Performance indicator 2018/19 Target 2018/19 To provide compliant and Percentage reliance on 59% sustainable financial services in government funding accordance with service delivery standards Percentage of valid invoices 95% paid within 30 days ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 106 [Tuesday, 8 May 2018 To attract a skilled workforce Percentage of approved 14% vacancy that is managed within a vacancies filled as per approved rate performance driven environment and budgeted workforce plan Percentage implementation of a Percentage implementation of 50% three-year ICT plan three year ICT plan Percentage compliance with 90% agreed service delivery standards To collaborate with stakeholders Stakeholder survey conducted Conduct in support of enhanced service and baseline established stakeholder delivery and core business objectives survey To provide support for strategic No.
of integrated operational 9 and organisational performance plans assesses according to management predetermined standards To protect the SIU form Percentage implementation of 100% potential legal risks legal compliance framework To protect the SIU’s integrity Percentage declaration of 90% from external and internal interests controlled by SIU threats employees Percentage implementation of 80% fraud prevention plan To assess internal controls Percentage of improved internal 100% through internal audits audits conducted in accordance with internal audit plan To enable the SIU to become Implementation level of Level 2 risk intelligent approved risk management framework through maturity index criterial levels 11.10.2.
The Investigations and Legal Counsel programme (previously Operations) has the following new strategic objective and performance indicators: ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 107 Table 9: SIU – Investigations and Legal Counsel: Selected objectives, indicators and target 2018/19 Strategic objective Performance indicator Target 2018/19 2018/19 To ensure that each case Percentage allegations 100% is centrally reported and electronically tracked monitored according to predetermined standards To ensure that each Percentage of centrally 100% allegation is assessed in registered allegations accordance with that are assessed in standardised criteria accordance with predetermined standards To increase legal Special Tribunal • Establish proper outcomes based on civil established and cases and other proceedings enrolled funding and logistical base (April – June 2018) • President of Tribunal appointed (July – Sept 2018) • Arrangements with JPs to provide logistical support (Oct-Nov 2018) Special Tribunal established (by Jan- March 2019) 11.10.3.
A new programme ‘Market data analytics and prevention’ is introduced with the following objectives and performance indicators (However, funding for this programme is included under Programme 2 for now): ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 108 [Tuesday, 8 May 2018 Table 10: SIU – Market data analytics and prevention: Selected objectives, indicators and targets 2018/19 Strategic objective Performance indicator Target 2018/19 2018/19 To direct internal and No.
of internal trend influence external analysis reports issued strategic decision- making processes through data analytics No.

of external risk assessment and trend analysis reports issued To assist state No.

of systemic institutions with the improvement plans prevention of the developed in conjunction reoccurrence of reported with targeted state cases institutions 4 4 1 To increase public No.

of targeted awareness 1 awareness about targeted campaigns conducted anti-corruption No.
of public perception 1 behaviour surveys conducted Development of the final Final draft Strategy draft of the National Anti- developed Corruption Strategy (to be developed by (NACS) as part of the service provider and ACTT implemented from 2020/21) 12.

Public Protector 12.1.


The Public Protector is an independent constitutional institution whose mandate, broadly, is to support and strengthen constitutional democracy by investigating maladministration or improper conduct in state affairs or the public administration in any sphere of government and to take appropriate remedial action.

The Constitution also states that the Public Protector must be accessible to all persons and communities.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 109 12.2.

In 2018/19, the PP is allocated R311 million compared to R301.8 million in 2017/18 (in real terms, the budget grows negatively by 2.2% from 2017/18) (Notably, in 2017/18, the allocation to the PPSA showed positive real growth of 7.83 %).

The baseline has been reduced by R8 million in 2018/19.
Of the revised budget amount, 80% or R250 million is for compensation of employees, while the goods and services budget is R53 million.

The Public Protector, however, has indicated that there will be a total shortfall for 2018/19 of R33 million for operational costs.
Table 11: Public Protector Budget 2018 MTEF Programme Budget (R’ million) 2017/18 2018/19 2019/20 2020/21 Real % change 2018/19 Administration 113.9 118 120.5 127.1 -1.8% (38%) Investigations 173.8 180.4 189.3 199.7 -1.6% (58%) Stakeholder engagement (4%) Total 14.1 13 13.7 14.5 -12.8% 301.8 311.4 323.5 341.3 -2.2% 12.3.
The Public Protector has indicated that certain projects have been deferred as a result of the budget constraints, including: • The creation of an internal audit function (presently this is contracted out).

• Implementation of the institutional effectiveness turnaround approach.

Improved security at offices.

• • Staff training.

• The relocation of high-risk provincial offices.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 110 [Tuesday, 8 May 2018 12.4.
For some time now, however, the Public Protector has indicated that the institution is underfunded: • • • In 2014, the Public Protector requested a budget of more than R300 million.

In 2015, the Public Protector indicated that R200 million was needed in addition to its baseline to fund the organisational structure.

In 2017, the Public Protector indicated that an amount of R883 million over the MTEF was required.

12.5.
12.5.

The PP has submitted the following request for/recommend- ations regarding additional funding: • An additional R33 million is made available to cover day- day operational costs.

• An additional R43 million is made available to fund special projects.

These include a case management system; security improvement; litigation costs; an integrated telephone system; subject matter experts; and a video conferencing facility.
• An additional R883 million is allocated over the MTEF to fund the ‘key non-capital and equipment requirements so as to fulfil its mandate as per the Public Protector Act’.

The ‘key non capital and equipment requirements’ referred to include the relocation of the head office; an IT master system plan; and complaints and stakeholder management.

12.6.
12.6.

A breakdown of the amounts requested over the MTEF is as follows: • The bulk of the additional funds requested over the MTEF – R746.5 million – is to fund the organisational structure: at present, the PPSA has funds for 393 of 707 posts.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 111 • Realignment of administrative staff and investigators salaries accounts for R5.4 million over the MTEF.
The job evaluations carried out in 2016 should be implemented to avoid costly court battles at the CCMA and discouragement of staff.

(The PP states that implementation of the OSD for senior managers and provincial representatives in 2016/17 was a contributing factor for the PPSA’s reported deficit in that year.)

• Although implementation of the case management system is underway, a further R26.9 million is needed over the medium term for support and maintenance.
• The allocation of R5 million for litigation costs is inadequate: an additional amount of R27 million over the MTEF is requested for this item.

• The requests for security improvements, a video conferencing facility and integrated telephone system are R19.6 million, R7.5 million and R9 million, respectively, over the medium term.

• An amount of R31.7 million over the MTEF is requested for subject matter experts.

12.7.
12.7.

The Public Protector has revised its strategic outcome orientated goals: • Prompt services delivered to all persons and institutions in order to promote and maintain good governance • Accessible Public protector services.

• An effective and efficient people-driven organisation.

• Oversight institutions and public complaints mechanisms strengthened.

12.8.
12.8.

Selected objectives, indicators and targets for each of the strategic goals are as follows: ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 112 [Tuesday, 8 May 2018 Table 12: Public Protector - Selected objectives, indicators and targets 2018/19 Strategic objective Performance indicator Target 2018/19 Strategic Goal: Prompt services delivered to all persons and institutions in order to promote and maintain good governance Investigate and finalise No.
of formal reports finalised 30 reports promptly Investigation and finalisation of 10 finalised systemic investigations/interventions Percentage adherence to 100% within turnaround turnaround times in finalisation of times cases Percentage of 2-years and older 100% cases finalised Promote culture of good No.
of dialogues held with organs 10 governance of state on systemic challenges Implementation of Percentage of remedial matters 100% remedial action followed up Strategic Goal: Accessible Public Protector services Ease of access to Public No.

of outreach clinics conducted 208 Protector Services No of MOUs entered into to MOU with DoJ&CD and 9 expand footprint provincial Speakers 100% implementation of all MOUs No.

of roadshows conducted 9 No.

of radio slots conducted 4 per province annually No.
of national events conducted 5 Strategic Goal: An effective and efficient people-driven organisation Develop and implement Percentage implementation of ICT 100% of hard drive ICT to optimally support infrastructure encryption business objectives Obtain clean audit Clean audit • Develop and implement clean audit strategy • Sustain and unqualified audit opinion with less than 3 matters of emphasis • Reduce the no.
of audit findings by 50% ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 113 Acquire office accommodation No.

of pool vehicles acquired 3 and pool vehicles Acquire long-term state-owned Engage with DPW office accommodation Strategic Goal: Oversight institutions and public complaints mechanisms strengthened Strengthening the role of No.
of bilateral agreements 1 by 31 March 2019 ombudsman institutions entered into annually Percentage of AORC board 100% of scheduled meetings chaired by PP AORC meetings Percentage of AOMA EXCO 100% of AOMA meetings attended by PP EXCO meetings 13.

South African Human Rights Commission (SAHRC) 13.1.

The SAHRC’s mandate is extremely broad, encompassing almost every aspect of civil, political and economic rights.
It must promote respect for human rights; promote the protection, development and attainment of human rights; and monitor how well human rights are observed.

The Constitution also provides that each year the Commission must require relevant organs of state to provide it with information on measures taken towards the realisation of the socio-economic rights contained in the Constitution.
The Commission has specific obligations in terms of the Promotion of Equality and Prevention of Unfair Discrimination Act, 2000 (PEPUDA).

The establishment of the Information Regulator will impact on the SAHRC’s obligations relating to the Promotion of Access to Information Act, 2000 (PAIA).

These functions, excluding the Commission’s protection mandate, will be transferred to the Information Regulator once it is operational.

13.2.
13.2.

As from 3 January 2017, seven new commissioners were appointed to the SAHRC.

Of these, five are appointed full-time and two in a part-time capacity.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 114 [Tuesday, 8 May 2018 13.3.

In 2017/18, the newly appointed commissioners elected to make few changes to the Strategic Plan 2015-2020.
However, the strategic plan has been revised since: this, therefore, is t the first strategic plan and annual performance plan of the new commissioners and (new) CEO.

Further, the focus areas of the commissioners are rearranged for 2018/19.

13.4.

In recognition of South Africa’s core challenges – high levels of poverty, inequality, unemployment and violence – all areas of the SAHRC’s work should attempt to contribute to addressing each of these challenges.

13.5.
13.5.

The SAHRC is allocated R178.8 million for 2018/19.

However, the SAHRC ability to deliver is constrained by its (relatively) small budget (compared to the mandate), which is now exacerbated by the budget reductions.

Its baseline has been reduced by R4.6 million in the 2018/19 financial year; R4.8 million in 2019/20 and R5.1 million in 2020/21.

13.6.
13.6.

Of the R178.8 million allocated to the SAHRC for 2018/19, R128 million (or 72%) is for personnel; and R46.1 million (or 26%) is for operations/corporate costs.

13.6.1.
13.6.1.

The allocation to programmes is as follows: Table 13: SAHRC – Programme Budget for 2018/19 (including a breakdown for personnel and operations) Programme (R’million) Personnel Operations 2018/19 Administration Promotion of human rights Protection of human rights Monitoring of human rights 31.1 80.1 7.9 9.8 47.0 2.1 0.6 0.2 78.1 82.2 8.5 10.0 Total 128.9 49.9 178.8 ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 115 13.7.
The greatest part of the allocation for operation/corporate costs is already committed, including accommodation and municipal charges (R23.5 million); IT related costs (R5.8 million); Human Resource related costs (R2.5 million) and auditing fees (the SAHRC pays R3 million to the Auditor-General for auditing).

The waiver of payment of auditing fees to the Auditor-General, which is also a Chapter 9, has been taken up at the Forum of Institutions Supporting Democracy (FISD) but without much success.
Effectively, once the committed expenditure is removed, the Commission has only R3.3 million for core operational units in 2018/19.

13.8.

In response, the SAHRC has re-prioritised its spending and devised stringent measures, such as freezing vacant posts; reviewing its organisational structure; developing a cost containment plan; and reducing its accommodation space at head office to lower the rental costs.

13.9.
13.9.

The Commission has the following revised strategic goals: • To enhance good governance and strengthen capacity to support delivery on the mandate.

• To promote respect for human rights and a culture of human rights.

• To promote the protection, development and attainment of human rights.

• To monitor and assess the observance of human rights in the country.

13.10.
13.10.

The Commission has identified the following five strategic objectives: • Improve the effectiveness and efficiency of the Commission to support delivery on the mandate.

• Deepen the understanding of human rights to entrench a human rights culture.

• Take steps to secure appropriate redress where human rights have been violated.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 116 [Tuesday, 8 May 2018 • Conduct research to monitor, assess and report on the observance of human rights.
13.11.

The SAHRC has the following selected objectives and targets for 2018/19: Table 14: South African Human Rights Commission - Selected objectives, indicators and targets 2018/19 Performance Indicators Performance Targets 2017/18 2018/19 2017/18 2018/19 Strategic Objective 2: Deepen the understanding of human rights and promote a human rights culture Implementation of Advocacy No.
of outreach clinics Full and Communications Annual Percentage implementation implementation of Plan (NEW) of annual know your Annual Plan 778 403 constitution campaign plan (NEW) Development of educational 8 pamphlets material No.

of human rights day events hosted No.
of calendar events hosted 10 10 Strategic Objective 3: Take steps to secure appropriate redress where human rights have been violated Hosting of investigative Completion of previous 4 hearings hearing reports Complete 5 hearing reports Strategic Objective 4: Conduct research to monitor, assess and report on the observance of human rights Completion of SAHRC section Completion of State of 3 research briefs Complete 1 194(3) economic and social human rights in South report rights recommendations report Africa report - No.
of research seminars - 4 hosted ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 117 14.

Committee’s observations: Department of Justice and Constitutional Development and National Prosecuting Authority 14.1.

Budget reductions.

14.1.1.

The Committee is exceedingly concerned about the effect of the budget reductions on the delivery of justice services.
The Committee agrees that measures to contain costs and the reprioritisation of funds can only achieve so much in mitigating the impact of an increasingly reduced budget.

There comes a point at which it is inevitable that a prolonged and increasingly severe deprivation of funds will render the affected institution largely useless as it will no longer have the resources (both human and financial) to go about fulfilling its mandated task(s) – in this instance, the delivery of justice services.
The adverse effects of the budget cuts are observed sharply in the reduced staff establishment.

Broadly, as the delivery of justice services is labour intensive, staff reductions slow matters down, undermining the work that has been put into creating a transformed and responsive justice system.
Staff reductions can also increase the workload of officials unacceptably, creating high levels of stress, low staff morale, an increased demand for employee wellness services, and loss of key staff to other positions in government or to the private sector.

In 2017/18, the ‘compensation of employees’ budget for the Vote was cut by R429 million and 1 213 posts within the Department were terminated; while 205 officials left the NPA; and 110 posts were cut from the Legal Aid SA’s establishment.
In 2018/19, the Vote’s baseline for this item is reduced by R671 million.

Although the Department has assured the Committee that, it will prioritise the filling of identified critical posts and sharing of support services wherever possible so that service delivery is not affected, the Committee remains concerned.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 118 [Tuesday, 8 May 2018 The NPA has also shared that due to the pressure of the increased workload, it faces an exodus: an estimated 444 NPA officials applied in March this year for 297 aspirant magistrates’ posts, while 25 prosecutors have already transferred to the magistracy in February 2018.
It has had to suspended its aspirant prosecutors’ programme, which is intended to provide training to legal practitioners seeking to become prosecutors, entirely.

Similarly, Legal Aid SA has reported that in addition to the loss of 110 staff in 2017/18 due to natural attrition, it will now have to retrench its public defenders and paralegals.

Further, Legal Aid SA has no relief capacity.


The Committee is of the view that, as the Department, the NPA and Legal Aid SA are all engaged with the provision of essential services, these budget cuts should be avoided so as not to compromise service delivery levels further.

14.1.2.

The Committee notes that historically the Chapter 9 institutions have been underfunded.

Consequently, these institutions feel the effect of the budget cuts especially severely.
The Committee draws attention to the resolution of the National Assembly that in line with the recommendations of the ad hoc Committee on the Review of Chapter 9 and Associated Institutions (2007) (the Asmal Report) the budgets for the institutions supporting democracy be contained in a separate programme in Parliament’s Budget Vote.

The Committee is also of the view that the National Assembly should embark on a process to engage formally with the Asmal Report in its entirety.

14.2.
14.2.

Transformation towards access to justice 14.2.1.

Renaissance project.

The Committee has previously noted the Department’s plan to bring about substantive change to our legal system in its entirety through policy reforms.

This Renaissance project also encompasses the modernisation of both the criminal and civil legal systems to address inefficiencies and restore ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 119 public confidence.
The Department has reported that a draft Terms of Reference has been prepared and will be released once it has Cabinet approval.

Further, the Department is in the process of establishing a Ministerial Advisory Committee to guide and oversee the project.

The Committee notes further that the Departments plans to develop three transformational policies (and a Blueprint) year.

A target of Ministerial approval by 28 February 2019 is given.
These are the Policy on Lower Court Reform; the Policy on Judicial Governance and Court Administration; a Policy Framework on the Overhaul of the Criminal Justice System as part of the Renaissance Project.

The Department also intends to finalise the Blueprint on Community Courts.

The Committee intends to arrange a comprehensive briefing on the Renaissance Project as soon as its programme permits.
For now, it requests that the Department provide it with the Terms of Reference as soon as this has received Cabinet approval and, in addition, provide it with a comprehensive written progress report by 30 June 2018.

14.2.2.

Use of language in court proceedings.

The Committee believes that language remains a fundamental barrier to access to justice and must be addressed holistically.
For example, the practice of police officers taking statements in English despite not being proficient in that langauge not only affects the quality of the statements but increases the chance that it does not accurately reflect what was communicated.

Furthermore, the quality of interpretation services in the courts are often less than ideal and are potentially prejudical to the accused.

The Committee notes the Judiciary’s view that English is to be the language of record in our courts.
The reasons advanced are to do with efficiency and the smooth running of the court system.

The Committee, however, remains committed to an approach that allows ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 120 [Tuesday, 8 May 2018 people to participate in court proceedings in the language that they understand best and will certainly raise the issue with the Judiciary when it next meets with it.
The Department was to finalise a Use of Official Languages in Court Proceedings Policy by the end of 2017/18.

The Committee is infomed that the Policy has not been finalised: the Department embarked on a process of internal consultation to obtain the views of key roleplayers in court proceedings, including the NPA, Legal Aid SA and the legal profession broadly.

Consultation with the public is to begin in 2018.


The intention is to implement the finalised Policy through the Lower Courts Bill that is to be introduced in 2018/19.

The Committee notes this.

Given the seeming lack of progress, the Committee intends to initiate a Bill to ensure that such legislation is finalised before the end of this Parliament.
The Committee notes that a (new) Language Policy Unit is planned to guide and manage measures (such as the development of foreign language interpretation and sign language proficiency) to improve the quality of court interpretation.

It is interested to see if the establishment of this Unit will have a positive impact.
In this regard, the Committee is particularly concerned about the quality of interpretation services and requests that the Department address the accreditation of interpreters who offer services in our courts.

In the meantime, the Committee requests that the Department keep it informed of its progress in finalising the Policy and the establishment of the new Language Policy Unit.

It requests a comprehensive written report by 30 June 2018.

14.2.3.
14.2.3.

Inclusion of an indigenous African language and indigenousAfrican law in the LLB curriculum.

The Committee believes that the ability to speak an indigenous African language should be a necessary requirement for the practice of law in this country.
As such, it should be compulsory for those wishing to practice law in South Africa to be proficient in an indigenous African language, in the same that in the past law graduates were ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 121 required to pass a course in English and Afrikaans as part of their university studies.

The Committee draws attention to the example of the University of KwaZulu-Natal which has already made IsiZulu a compulsory subject in its LLB curriculum.
The Committee is informed that Department met with the Council for Higher Education in May 2017 at which the issue of the compulsory study of indigenous African languages and indigenous law as part of the LLB curriculum was raised.

The Council informed the Department that the Standards applicable to the LLB curriculum do provide for both of these.

The Committee is not satisfied with the response.


It intends initiating a process to bring a Committee Bill requiring the study of an African indigenous language, at university level, as a prerequisiste to the practice of law in this country.

14.2.4.

Regulation of the paralegal sector and provision of funding for sustainability.
The Committee acknowledges the Department’s efforts, in conjunction with the Foundation for Human Rights, to address the issue of funding for community-based advice offices to ensure their sustainability by creating a ‘basket fund’ to ensure the sustainability of these offices.

The issue of sustainability is being discussed with donor organisations and National Treasury to find a lasting solution.
In this regard, the Committee is informed that the Foundation for Human Rights with the EU-funded Sector Budget Support programme ‘Socio-Economic Justice for All’ (SEJA) provides support to Community-Based Advice Officess (CBAOs).

A Key Performance Area of the SEJA programme relates to ‘Sustainable collaboration between Government, Chapter 9 institutions, and other stake-holders in justice service delivery and socio-economic rights’.

This includes support for community advice offices.
A sustainability ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 122 [Tuesday, 8 May 2018 study is being conducted to identify the challenges and opportunities in the sector and to make a case for why advice offices are viable institutions to invest in.

The study is at an advanced stage of finalisation.

In addition, the Department is exploring the potential role of other government departments in providing support to the sector.
The Department has engaged with National Treasury as a first step to establishing a collaborative group to detail the strategic support that Government can provide the sector.

Further, a task team has been established to explore the various funding models.

A draft bill for the recognition of paralegals is being prepared and will be finalised once the funding model is approved.
Despite the reported progress, the Committee remains frustrated about the length of time that it is taking to resolve the status of the paralegals.

Paralegals and community advice centres play a major role in promoting access to justice, especially for those who would not otherwise be able to afford legal services.

The Committee is of view that statutory recogntition of the sector is urgent and the requisite legislation should be finalised before the end of this Parliament.
The Committee requests that the Department provide a comprehensive written report on progress by 30 June 2018 and to continue to keep it updated as part of the Department’s quarterly reporting process.

14.2.5.

Policy on the design of the judicial governance and court administration model.
The Committee has noted previously that an Inter-Ministerial Committee (IMC), chaired by then Deputy President Ramaphosa, was appointed to make recommendations to Cabinet on an appropriate Judicial Governance and Court ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 123 Administration Framework.

The Deputy President had met with the Chief Justice to obtain the Judiciary’s views on this.
In addition, a technical task team had been established, chaired by the Director General: Justice and Constitutional Development to assist the IMC’s work.

At the time, the Committee welcomed the target date of 28 February 2018 for the Policy’s submission to Cabinet.

However, the APP 2018/19 now requires that the Policy be submitted for Ministerial approval by the end of February 2019.
The design of a judicial governance and court administration model predates this Administration: a judiciary-led court administration model was mooted several years ago and the Judiciary has already undertaken extensive research and made proposals in this regard.

At this rate, the Committee foresees that the Policy will not be finalised within the lifespan of the present Administration, which is extremely disappointing.
For now, the Committee requests that the Department provide it with a comprehensive written report on progress, in particular, the work of the technical task team, with timeframes by 30 June 2018.

The Department should also continue to report on this item quarterly.

14.2.6.

Land reform.

Apartheid dispossessed people of land and resources contributing to the levels of poverty and inequality that characterise our society.

The processing of land claims is slow and there are huge backlogs.
The snailpace at which land restitution is being carried out creates the risk of land occupations and violent protests as people become increasingly frustrated.

The Committee has repeatedly raised its concerns about the functioning of the Land Claims Court and has requested that it be properly capacitated.

In particular, it has called for the appointment of permanent capacity to that court.
The Committee acknowledges that, at present, Judge President Meer, Judge Canca, Judge Ncube ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 124 [Tuesday, 8 May 2018 and Judge Molefe are assigned to the Court but these are acting appointments.

The Committee is unable to comment on the performance of these courts as it does not have access to that information.
The Committee, however, notes that there has been engagement between the Departments of Justice and Rural Development and Land Reform on the matter of the capacitation of the Land Claims Court and measures to accelerate the review of the Restitution of Land Rights Amendment Act in line with the Constitutional Court judgement.

In addition, the Committee is informed that a Committee Bill to comply with the judgement was introduced in the National Assembly in August 2017.
The Committee has also proposed that the funds for legal representation and advice in land matters that is allocated to a private service provider (by the Department of Rural Development and Land Reform be transferred to Legal Aid SA for this purpose.

The Committee has argued that Legal Aid SA is well placed to provide the necessary advice and representation: it has a national footprint, has developed capacity to undertake a significant number of civil cases and provides legal advice to the public.
With the necessary funding, the Committee believes that Legal Aid SA would swiftly develop dedicated expertise to perform this function.

In addition, Legal Aid SA takes the matter of the quality of its services very seriously.

The Minister requested that Legal Aid SA explore the feasibility of it taking on land claim and eviction matters and Committee welcomes the feedback it received in this regard.
Regarding legal assistance to land claimants, it appears that the current Legal Aid Regulations would need to be amended to allow for legal assistance in respect of claim lodgement and investigation (this is excluded at present).

However, the Land Rights Management Facility means test ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 125 is similar to that employed by Legal Aid SA at present.
There are 6 900 outstanding claims from 1999 and the extent of the potential litigaton is unknown.

There are a further 164 000 claims that were lodged between July 2014 and July 2016, which cannot be processed because of the Consitutional Court ruling on the constitutionality of the amending legislation.

At this stage, the possible extent of legal representation in these matters cannot be determined.

Further, no information was provided on the 325 cases before the Land Cliams Court.
On providing assistance in eviction matters, an amendment to the Extension of Security of Tenure Act, 1997, (ESTA) which is aimed at establishing a Land Rights Management Board and Committee, is with the President for signature.

Notably, in terms of this legislation, the Board must create a mechanism for the provision of legal assistance and representation to affected persons and formulate a means test to determine when the Board will fund this.
Legal Aid SA was able to detemine that the previous service provider of legal services had handled 1 863 ESTA matters.

From the available information, it appears that the cost of the legal assiatance was approximately R185 million.

Since July 2016, a new firm of attorneys has been apppointed: the contract will expire in July 2018.

It is reported that 1 434 new cases were taken on (of which 227 are finalised) at a cost of R130 million (between August 2016 and November 2017).
The Committee is concerned that unless a firm decision regarding the transfer of the function of providing legal assistance in land matters to Legal Aid SA is made soon, another private service provider will be appointed and the matter will be placed on hold until the contractual period is up.

The matter is likely to drag on indefinitely.


ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 126 [Tuesday, 8 May 2018 The Committee, therefore, requests that the Ministry continue to engage with its counterpart at Rural Development and Land Reform and National Treasury.
The Committee, however, will approach the Standing Committee on Appropriations in terms of the Money Bills Amendment Procedure and Related Matters Amendment Act, 2009, to request additional funds or the transfer of fundds to legal Aid SA for such work.

The Committee also undertakes to engage with the Portfolio Committee on Rural Development and Land Reform.

14.2.7.

Integrated Criminal Jusice Strategy (ICJS).


The Integrated Criminal Justice Strategy (ICJS) is intended to provide a mechanism to address the ‘silo’ approach of the relevant JCPS Cluster departments and entities to strengthen co-ordination and co-operation among them.
The ICJS is to incorporate the CJS 7-Point Plan and IJS modernization interventions, and envisages dealing with all the new trends and focus areas that are currently not adequately catered for, in one overarching integrated strategy (the ICJS).

The Committee notes that the ICJS was to have been developed and approved by 31 March 2018 but is now informed that the target date for submission to Cabinet has been revised to 28 February 2019 .
The ICJS will have two phases: The first phase relates to the development of the Strategy.

Phase 2, therefore, is concerned with implementation.

Funding of the ICJS is to take place within the normal baseline allocations but funds are allocated from the CJS Review/Revamp and from CARA funding.

The Committee is not pleased at the endless shifting of targets and repeats its intention to arrange a joint briefing on the ICJS, as soon as the programme permits.
In the meantime, the Committee requests that the Department provide it with a comprehensive written report on the progress of the project by 30 June 2018 with timeframes, and to continue to keep the Committee updated as part of the Department’s quarterly reporting process.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 127 14.2.8.

Integration of IT systems (IJS).


The ultimate goal of the IJS is to ensure seamless integration and consolidation of critical information between the entities that form part of the JCPS Cluster.

The Committee notes too that the Auditor-General selected the IJS as a key value add project.

There are eight departments representing key components of the IJS value chain, while the Department of Justice and Constitutional Development is responsible for project management.
Successful integration of interdepartmental information exchange is highly dependent on establishing business applications across all departments.

The Committee notes progress, in particular, with respect to the two of three integration priorities: Case Management Integration and Business Intelligence Integration.

The third integration capability - Person Management Integration - is more challenging as the systems of all departments must have the necessary capabilities.
The Committee has often expressed its frustration at the slow pace of progress of the IJS and, therefore, is glad that there now appears to be some tangible results.

It is a concern, however, that underspending on the CJS is attributed to some departments not performing as anticipated.

This suggests that, despite all that has been invested in this project, there are ongoing challenges, which have yet to be resolved.
The Committee notes that the IJS Board has requested an opportunity to address a joint briefing of the Portfolio Committees on Justice and Correctional Services, Police, Home Affairs and Social Development on the progress made so far.

The Committee agrees that this is a priority and will arrange for this as soon as its programme permits.
The Committee also requests that the Department provide a comprehensive report of progress by 30 June 2018 and, in addition, continue to report on this item as part of the quarterly reporting process.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 128 [Tuesday, 8 May 2018 14.2.9.

Community courts.

The Committee notes that the Department intends to develop a blueprint on Community Courts for submission to the Minister by 28 February 2019.
The Committee was told before that the South African Law Reform Commission (SALRC) had been tasked with conducting research into community courts in South Africa and that a draft report should have been available by the end of September 2017.

The Committee does not understand why the process is taking so long, given that there has been a community courts’ pilot project in existence for more than a decade.
The Committee requests that it is furnished with the outcome of the research and will continue to engage with the Department on the Blueprint’s development.

14.3.

Vulnerable groups 14.3.1.

Dedicated sexual offences courts.

The Committee repeats its concern about the impact of funding constraints on the rollout of dedicated sexual offences courts, It notes that 14 courts are to be adapted this year in line with the sexual offences courts model.
In addition, the Department plans to upgrade 45 closed circuit television systems in regional courts in line with the minimum standards in sexual offences courts model.

This will increase to 90 in 2019/20 and 120 in 2020/21.

The Committee repeats its intention to engage with the Department and other stakeholders specifically on the rollout and functioning of the dedicated sexual offences courts as soon as its programme permits.

14.3.2.

Femicide Watch.


The Committee notes that the Department has introduced a new indicator ‘Phases of the Femicide Watch established as recommended by the United Nations’.

Phase 1 is targeted for completion by the end of 2018/19.

The Committee is ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 129 interested in hearing more about this initiative and requests that the Department provide it with a comprehensive written report by 30 June 2018.
The Committee intends also to request a briefing on this as soon as its programme permits.

14.3.3.

Maintenance.

The Committee is pleased about the improved targets for the indicator ‘Percentage of maintenance matters finalised within 90 days from the date of proper service of process’ but is concerned that about the Department’s capacity to deliver.
For example, the Committee is directed to a report that the only maintenance officer for the Maintenance Court at Cape Town shoulders a workload that should be shared among at least three officers.

The Committee asks that the Department provide it with a comprehensive written report on the functioning of these courts, clarifying among others the allocation of capacity and identifying any challenges by 30 June 2018.

14.4.

Court infrastructure 14.4.1.


The Committee welcomes that the Department has reported improved delivery in the context of capital works projects by the Department of Public Works and the Independent Development Trust (IDT).

Historically, it has been a challenge to deliver new courts on time and within budget.

Ironically, the Department has repeatedly reported slow spending on this budget item with ‘savings’ that were returned to National Treasury.
In 2017/18, however, the Department was faced with a budget shortfall of R300 million which was remedied by way of a virement.

The building of new courts remains a core element of the Department’s efforts to improve access to justice.
The establishment of the new High Court in Mpumalanga, in particular, is vital in this regard and the expectation is that this court will be completed later this year at a cost of R1.2 billion ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 130 [Tuesday, 8 May 2018 (the costs associated with the building of this court have escalated substantially since 2016).
The Committee, however, is concerned that the given completion date is premature as, despite the project being at a very advanced stage, work has stalled while a solution is found to an access road to the Court.

The Committee is pleased though to note that funds have been reprioritised for the operationalisation of this court.
The Committee requests that the Department provide it with a comprehensive progress report on all its infrastructure projects by 30 June 2018, and be prepared to address the Committee quarterly of this matter.

The Committee will schedule a joint briefing with public works and the IDT on all aspects of the infrastructure programme, including planned maintenance, as soon as its programme permits.

14.4.2.

Planned maintenance.


The Committee is alarmed that there are no funds within the Department of Public Works to undertake planned maintenance.

The ageing nature of many of our court buildings requires that are regularly maintained.

If neglected, these buildings quickly deteriorate and require costly repairs.

The Department has informed the Committee that although it was using its own budget to assist the Department of Public Works it can no longer afford to do so.
The Committee remains unclear about what the Department is doing to address this challenge and requests a comprehensive written report on this by 30 June 2018.

The Committee will schedule a joint briefing with public works and the IDT on all aspects of the infrastructure programme, including planned maintenance, as soon as its programme permits.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 131 14.5.

Transformation of State Legal Services 14.5.1.

State Legal Services.


The Committee has previously noted that the State is the largest consumer of legal services in the country.

It also employs hundreds of professionals who provide litigation and legal advisory services for the State in different capacities.
Of concern are reports of disarray within the offices of the State Attorney and complaints regarding the provision of state legal work to young, previously disadvantaged legal practitioners in a context where there is currently no comprehensive set of clearly defined rules governing how litigation services are to be acquired, managed and monitored.

In this regard, it welcomes the Department’s intention to prioritise the transformation of State Legal Services.
The State Attorney continues to experience many challenges.

Towards the end of the Fourth Parliament, legislative amendments were passed to provide for a ‘chief’ State Attorney – the Solicitor-General - but this appointment has been delayed because of challenges relating to the level of the post.

More recently, the filling of the position was halted pending the restructuring of the entire state advisory and litigation offices.
The Committee is extremely pleased that the Department has taken the initiative to designate Ms Vedalankar, who has been the CEO at Legal Aid SA for many years and is instrumental in not only turning it around but also in ensuring its excellence, as Project Leader to assist with the transformation.

The Committee will arrange a dedicated briefing on the full scope of the plans as soon as its programme permits.
In the meantime, the Committee requests that the Department provide a written report on progress made by 30 June 2018.

The Department is also requested to report on progress quarterly.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 132 [Tuesday, 8 May 2018 14.5.2.

State support to Black legal practitioners, especially black women/briefing patterns.
The Committee believes that a great deal more should be done to support Black legal practitioners, in particular black women, wishing to make law their career.

The many obstacles that women legal practitioners encounter are well documented and require a comprehensive response that involves the profession as well.

The Committee notes that the Department now include a breakdown of the percentage and value of briefs awarded to previously disadvantaged individuals on its website monthly.
The Committee repeats its intention to convene a meeting involving a range of stakeholders as soon as its programme permits.

14.6.

Information Regulator.

The Committee is concerned about the lack of progress in fully capacitating the Information Regulator.

POPIA requires only that the Regulator consult with the Minister of Finance on its staffing.
The Regulator has consulted with the Department of Public Service and Administration (DPSA), National Treasury and the Public Service Commission, and has compiled the necessary documents, including a report on its benchmarking visits.

The latest obstacle is an insistence that the Regulator be listed in the PFMA as a Schedule 3A entity before its organisational structure can be approved.
However, the Board of a Schedule 3A entity is the accounting authority, whereas POPIA clearly provides that the Regulator’s CEO is its accounting officer.

The Regulator will approach the Minister of Finance for assistance to resolve the contradiction.

The Committee is frustrated that it is taking so long to resolve the matter of the organisational structure and, therefore, urges that the Ministry do all that it can to assist the Regulator in finding a resolution to this new obstacle as soon as possible.
It asks that it be kept informed of developments in this regard.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 133 15.

National Prosecuting Authority 15.1.

The Committee notes the concerning trend to prematurely announce an intention to institute a private prosecution despite the NPA not having declined to prosecute the matter in question.

The Committee believes that such announcements damage the NPA’s legitimacy in the eyes of the public and are therefore undesirable.
15.2.

Budget reductions and staff shortages.

The Committee has already dealt with the impact of budget cuts on the NPA’s staff establishment.

The Committee wishes to highlight that the loss of prosecutorial capacity on this scale has increased the workload of our already overburdened prosecutors substantially.
The consequences for the effective and efficient functioning of the criminal justice system are profound and run counter to the Government’s stated priorities to create safer communities and combat corruption.

Without the ability to retain and attract the necessary capacity and expertise, the ability of the NPA to fulfil its constitutional and legal mandate is severely undermined.

16.

Legal Aid SA 16.1.


Once again, there was unanimous support from the Committee for the view that Legal Aid SA is an exemplary institution that deserves its full support.

16.2.

Legal Aid SA is no longer able to absorb the budget shortfall created by a minimal increase that is less than the actual increases to its costs.

This shortfall is exacerbated by a baseline reduction of 5% this year.

The combined effect is that Legal Aid SA has a budget shortfall/cut of R164 million for 2018/19.
In 2019/20, the projected shortfall/cut increases to R180.9 million ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 134 [Tuesday, 8 May 2018 and, in 2020/21, the shortfall/cut is R221.2 million.

Legal Aid SA already runs a tight ship and managing this will require that it go beyond capping its salaries budget and implementing cost- cutting efficiency measures.
The only recourse is to reduce the staff establishment further (by 97 posts this year, in addition to the 110 post that were reduced last year).

Legal Aid SA has quantified the consequences for court coverage and for the number of cases it will be able to handle.

This information is captured elsewhere in this report.

The Board has considered the cumulative shortfall and has agreed that it is unworkable.
The main reason being that they will result in high levels of staff reduction and a consequential decrease in service delivery.

The Committee agrees with the Board that a reduction in legal aid services infringes on the constitutional rights of South Africans.

The Committee is concerned that this may expose Legal Aid SA and the State to litigation in future.
As it is, the Committee is aware that the high demand for legal aid services poses an enormous challenge to Legal Aid SA’s practitioners, especially as practitioner coverage at many courts is already insufficient.

Without representation, presiding officers will have no choice but to postpone matters until representation is available.

To do anything else would undermine a defendant’s right to a fair trial.
The proposed budget reduction, therefore, will have serious consequences for the functioning of the criminal justice system as a whole.

16.2.1.

As discussed earlier in this report, the Committee requests that the Ministry engage with the Ministry of Rural Development and Land Reform to confer the feasibility of transferring funds for legal assistance to land claimants to Legal Aid South Africa.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 135 17.
Special Investigating Unit 17.1.

The Committee notes that the SIU intends to bring legislative amendments to its enabling legislation that will provide it with a clear legislative mandate to address its funding model; undertake pre-proclamation investigations; and monitor and enforce remedial measures.

In addition, legislative amendments are required so that the SIU can provide the services/undertake the functions envisaged by the organisational review.
For example, the SIU is not mandated at present to perform a market data analytics function.

17.2.

The Committee has engaged with the SIU in the past on allegations that appeared in a newspaper last year.

Adv.

Mothibi strongly rebutted the allegations when he appeared before the Committee in October 2017.

At the time, it was suggested that the allegations might have been linked to unhappiness by certain staff members regarding the organisational review.
The Committee now has a letter from certain dissatisfied staff members.

It is a concern that such levels of dissatisfaction exists within the SIU, as it has the potential to undermine the stability of the Unit.

In addition, these allegations tarnish the image of the Unit, which, as an integrity institution, it can ill afford.

17.3.

The Committee believes that any changes to the organisation structure should only take place in terms of the approved organogram.
In addition, it implores the SIU to ensure that any job losses are kept to a minimum.

17.4.

The Committee has expressed its concern regarding the possible duplication of roles among anti-corruption organisations.

At the time, the SIU agreed that there was scope for better co- ordination and communication between institutions, a view that the Committee supported.
The Committee, therefore, is pleased that the SIU has proactively embarked on a number of initiatives ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 136 [Tuesday, 8 May 2018 to improve its stakeholder relations.

The SIU has entered into a Memorandum of Understanding with the Presidency and the Justice Department to ensure continued co-operation and assistance so that motivations and the publication of proclamations are handled expeditiously.
The SIU also held its first stakeholder engagements with the theme ‘Working together towards ridding society of corruption, malpractice and maladministration’.

17.5.

Further, the Committee is informed that since April 2017, 34 of the 99 files submitted by the SIU to the NPA have been converted to cases.

These matters have been directed to the relevant Specialised Commercial Crime Unit offices.

Five such cases have been finalised since April 2017.
The Committee asks that the SIU continue to keep the Committee informed of measures to enhance collaboration between it and the NPA.

17.6.

The SIU has the power to conduct civil litigation in its own name or in the name of the affected state institution but heavy court rolls often result in its civil litigation work being delayed.

The Committee is informed that there is finally progress in establishing a Special Tribunal that will allow the SIU to process matters faster than in the ordinary civil courts.
It is envisaged that the Special Tribunal will effectively operate as a specialist division of the High Court.

The Committee requests that it be kept informed of progress regularly.

18.

Public Protector 18.1.

The Committee is especially concerned at reports of institutional instability at the PP because of constant turnover and the redeployment of staff, particularly among senior staff.
The Committee is unable to comment on the reasons for this but is of the view that this matter should receive urgent attention.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 137 18.2.

The Committee notes too that the Deputy Public Protector was not present at the meeting.

It raised its concern that the Public Protector is not making best use of the Deputy, who has an important leadership role to play within the institution.
The Committee was informed verbally that the Deputy is delegated the functions of staff training and quality assurance but requests that it be provided with the full list of delegations to the Deputy Public Protector for the record.

18.3.

The Committee notes the PP’s request for additional funds.

While the Committee understands why the request is made and is largely sympathetic, the request is made at a time when all Departments, entities and institutions are being asked to compromise.
The Committee did propose in its BRRR that the PP be given additional funding for increased investigative capacity and for the increased costs of litigation but was informed by the Minister of Finance that there is simply no money at this time.

18.4.

The Committee is concerned about the legal costs associated with the increased number of the PP’s findings that are being taken on review since the Constitutional Court clarified the Public Protector’s powers of remedial action.
The Committee requests that the PP keep it informed of the number and status of the review applications and the associated costs.

The Committee, however, asks that the PP ensure that its reports are of the highest standard to lessen the prospects of a successful challenge for procedural reasons.

18.5.

The Committee notes that the PP has focused on clearing backlog cases for 2018/19.
While this is highly commendable, the Committee is concerned that this may ignore the complexity of some matters and could affect the quality of the final report in such cases.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 138 [Tuesday, 8 May 2018 18.6.
The Committee asks that the PP look closely at its Rules to ensure that these address informing complainants of the progress and outcome of their cases and, also, the prioritization of matters involving Executive Members so that these are finalized in the shortest possible time.

18.7.
18.7.

The Committee repeats it support for the Public Protector’s view that the Public Protector Act, 1994, requires revision to bring it in line with the Constitution and requests that this be brought to Parliament as a matter of urgency.

19.

South African Human Rights Commission 19.1.

During last year’s Budget and BRR processes, the Commission highlighted that it needed additional funding to fulfil its monitoring responsibilities because of various court orders, which the Committee supported.
However, the response from National Treasury has been that there is no additional funds for this.

19.2.

The Committee is interested in engaging further with the Commission on its plans.

The Committee will arrange for a follow-up meeting with at a suitable time.

The Committee is also concerned that the singular pursuit of a ‘human rights’ agenda may cause the consideration of ‘people’s rights’ to be overlooked.

19.3.
19.3.

Committee expressed concern about the extent of the expenditure on personnel costs at the expense of operations.

The Committee is aware that the Commission’s work is labour intensive but the extreme imbalance of the salaries and operational budgets casts doubt on whether the Commission is able to deliver on its mandate once its salary bill is satisfied.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 139 19.4.
The Committee seeks clarity as to whether other sources of income (such as donor funding) have been explored to augment the present funding crisis.

19.5.

The Committee requests that the new Commission clarify its achievements so far and provide it with a written report in this regard.

19.6.

The Committee is concerned to avoid duplications and encourages the efficient use of resources.
The Committee, therefore, is interested in the extent to which the Commission has engaged with the Department and the Foundation for Human Rights, both of which also do work in the area of constitutional awareness.

The Committee asks that the Commission provide it with a report on the outcome of any such engagements.

19.7.
19.7.

The Committee is also interested to know whether the SAHRC has explored the use of technology to improve awareness and assist with access, as well as a cost saving measure (for example, working from home and video conferencing).

19.8.

The Committee is interested in the SAHRC’s views on what is the proper balance between the policing of transgressions of human rights of human rights) and developing a human rights culture.
It look forward to engaging with the Commission on this at its next meeting with it.

19.9.

The Committee asks that the Commission clarify what it is doing to address the lack of awareness among the public of the Constitution, the Bill of Rights and the work of the Commission.

19.10.

The Committee notes that the enabling legislation provides that the seat of the Commission must be in Gauteng.
It requests further clarity on the decision to locate all the Commissioners at the national office and requests a report in this regard.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 140 [Tuesday, 8 May 2018 19.11.

The Committee requests that the SAHRC provide it with a report on its efforts to engage with the Department of Public Works on the availability of state owned buildings to house its offices.

20.
20.

Reporting requests Reporting request Action required Associated timeframe Renaissance project: Copy of the Terms of Once Cabinet has Terms of Reference and progress Reference [See paragraph14.2.1] approved the Terms of Reference.
Comprehensive written 30 June 2018 progress report Comprehensive briefing To be scheduled as soon as the programme permits Use of Official Languages in Court Committee to engage with Meeting to be Proceedings Policy: Progress in Judiciary on its views on the arranged finalising the Policy for incorporation use of language in court in Lower Courts Bill; proceedings Establishment of a Language Policy Unit [See paragraph 14.2.2.]
Progress report on finalised 30 June 2018 Use of Official Languages in Court Proceedings Policy Written progress report on the 30 June 2018 establishment of a Language Policy Unit ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 141 Inclusion of an indigenous African Committee to request permission Before the end language and indigenous African law of the House to initiate a in the LLB curriculum: Committee Bill of the Fifth Parliament [See paragraph 14.2.3.]
Regulation of the paralegal sector Introduction of Paralegal Bill 2018/19 and provision of funding for sustainability: Study funded by the FHR making case for viability of CBAOs; engagement Comprehensive written report on 30 June 2018 progress to resolve issue of and quarterly sustainability and funding with government departments on provision of strategic support; Task team to explore funding models; Introduction of legislation regulating the paralegal sector [See paragraph 14.2.4] Policy on the design of the judicial Comprehensive written report 30 June 2018 governance and court administration and quarterly model: Progress report [See paragraph 14.2.5] Land reform: Comprehensive written report on 30 June 2018 Capacitation of the Land Claims outcome of engagement with Court; Department of Rural Funding to Legal Aid SA Development and Land Reform [See paragraph 14.2.6] Committee on Rural Development programme Engage with the Portfolio As soon as the and Land Reform permits Engage with the Standing As part of Committee on Finance regarding Budget process additional funds/transfer of funds ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 142 [Tuesday, 8 May 2018 Integrated Criminal Justice Strategy [See paragraph 14.2.7] Integration of IT systems (IJS) Comprehensive written report 30 June 2018 Briefing Joint briefing on progress made on the IJS As soon as the As soon as the programme permits programme permits 30 June 2018 [See paragraph 14.2.8] Community Courts: Progress report Blueprint [See paragraph 14.2.9] Dedicated sexual Joint briefing on rollout and functioning As soon as the offences courts of dedicated sexual offences courts programme permits [See paragraph 14.3.1[ Femicide Watch Comprehensive written report 30 June 2018 [See paragraph 14.2.2.]
Briefing As soon as the programme permits Maintenance: capacity Comprehensive written report 30 June 2018 challenges [See paragraph 14.3.2.]

Court infrastructure Comprehensive written report 30 June 2018 [See paragraph 14.4.1.]

Joint briefing (also planned maintenance) As soon as the programme permits Planned maintenance Comprehensive written report 30 June 2018 [See paragraph 14.4.2.]
State Legal Services Comprehensive written report 30 June 2018 [See paragraph 14.5.1] Briefing As soon as the programme permits ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 143 Support to Black legal practitioners Consultative meeting As soon as the [See paragraph 14.5.2] programme permits Information Regulator: capacitation Progress report 30 June 2018 [See paragraph 14.6] Special Investigating Unit Collaboration with NPA Progress report on efforts to 30 June 2018 [See paragraph 17.4] Special Tribunal [See paragraph 17.5] Public Protector enhance collaboration with the NPA Progress report 30 June 2018 and quarterly Delegations to Deputy Public Protector Report 30 May 2018 [See paragraph18.2] South African Human Rights Commission Further engagement on Strategic Plan Meeting [See paragraph 19.2] Donor funding See paragraph 19.4] Written report As soon as the programme permits 30 June 2018 Report on Commissioner’s achievements Written report 30 June 2018 [See paragraph 19.5]] Engagement with the Justice Department Written report 30 June 2018 and Foundation for Human Rights on constitutional awareness [See paragraph 19.6] ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 144 [Tuesday, 8 May 2018 Achieving a balance between reactive and proactive work Written report 30 June 2018 [See paragraph 19.8] Public awareness [See paragraph 19.9] Office accommodation [See paragraph 19.9] Relocation of commissioners [See paragraph 19.10] 21.
Recommendations Written report 30 June 2018 Written report 30 June 2018 Written report 30 May 2018 21.1.

The Committee, having considered the Budget Vote 21: Justice and Constitutional Development supports it and recommends that it be approved.

21.1.1.

The Committee recommends further that the baseline reduction affected in the case of Legal Aid SA over the medium term be reversed to avoid the retrenchment of its staff.

21.2.

Additional matters 21.2.1.


The National Assembly resolve to consider and adopt the recommendations of the report of the ad hoc Committee on the Review of Chapter 9 and Associated Institutions.

21.2.2.

The Committee will also be approaching the Standing Committee on Appropriations to argue for additional funding or the transfer of funding to support legal advice to and litigation by legal claimants to Legal Aid SA.
This will be done in terms of the Money Bills Amendment Procedure and Related Matters Act, 2009.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 145 21.2.3.

The Committee recommends that the Ministry continue to engage with the Ministry of Rural Development and Land Reform on the transfer of funds allocated to support legal advice to and litigation by land claimants to Legal Aid South Africa.

21.2.4.
21.2.4.

The Ministry intervene to expedite the finalisation of the Information Regulator’s organogram and to ensure the appropriate allocation of resources, including accommodation, for the Regulator to be able to begin its work as a matter of extreme urgency.

Report to be considered National Council of Provinces 1.

REPORT OF THE SELECT COMMITTEE ON PETITIONS AND EXECUTIVE UNDERTAKINGS, ON THE STUDY TOUR UNDERTAKEN TO SWEDEN, STOCKHOLM, FROM 2 TO 6 OCTOBER 2017 1.
BACKGROUND TO THE STUDY TOUR The Select Committee on Petitions and Executive Undertakings (Committee) having considered the Embrace Dignity Petition, received undertaken a study tour to Stockholm, Sweden, from 2 to 6 October 2017, reports as follows: In or around, 2 March 2016, the Select Committee on Petitions and Executive Undertakings (Committee) held a hearing on the Embrace Dignity Petition (petition).
The petition was submitted to the Chairperson of the National Council of Provinces (NCOP) by the Embrace Dignity, a non- profit organisation, which advocates for legal reform to end prostitution and sex trafficking.

In the petition Embrace Dignity requests the intervention of the NCOP in, amongst others, investigating the available legislative responses to ending the prostitution and trafficking of women and girls in the South Africa.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 146 [Tuesday, 8 May 2018 Following the hearing on the petition, the Committee adopted a preliminary report on the petition, on 7 September 2016 (report) and later tabled it in the House.

In the report the Committee recommended the Committee embark on study tours to Sweden and the Netherlands.
The purpose of the study tours is to enable the Committee to better understand and comprehend the legal approaches or models adopted, in each of the selected countries, as a response to the issues of prostitution and trafficking – Sweden, on one hand, has adopted what is often termed the partial –decriminalisation or Nordic model to prostitution and the Netherlands, on the other hand, has adopted a regulated approach to prostitution.
A further recommendation, namely recommendation 10.2, in the report is that the Committee adopt a final report on the petition after it has undertaken the study tours to Sweden and the Netherlands.

It is against this background that the Committee embarked on the first of the two proposed study tours and undertook a five-day study tour to Sweden, from 2 October 2017 to 7 October 2017.

2.
DELEGATION OF THE STUDY TOUR The Committee delegation that undertook the study tour comprised the following Members: 3.1 Hon M T Mhlanga, ANC, Mpumalanga (Acting Chairperson of the Committee); 3.2 Hon T Wana, ANC, Eastern Cape; 3.3 Hon J M Mthethwa, ANC, Kwa-Zulu Natal; 3.4 Hon G Manopole, ANC, Northern Cape 3.5 Hon D L Ximbi, ANC, Western Cape; 3.6 Hon M D Monakedi, ANC, Limpopo; 3.7 Hon B Chetty, ANC, Kwa-Zulu Natal; 3.8 Hon G Michalakis, DA, Free State; 3.9 Hon B Engelbrecht, DA, Gauteng; and 3.10 Hon T J Mokwele, EFF, North-West ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 147 The Committee delegation was supported by the following officials: 3.11 Mr N Mkhize, Committee Secretary; 3.12 Mr G Dixon, Committee Secretary; and 3.13 Dr M Gondwe, Committee Content Advisor.
3.

STRUCTURE AND SCOPE OF THE STUDY TOUR The study tour largely took the form of daily presentations, meetings and engagements with selected stakeholders that are either directly or indirectly involved with the issues of prostitution and trafficking in Swedish society.
These stakeholders ranged from the State Secretary to the Minister of Children, the Elderly and Gender Equality; the Chancellor of Justice; the Swedish Prosecution Authority; the National Coordinator for Trafficking and Prostitution; the Swedish Police Authority; the Swedish Parliament and civil society organisations.

And during these engagements and interactions, Members were able to ask questions around the presentations made and further share their opinions and views on related matters.
What follows below is a summary of the numerous presentations made to the Committee during the study tour and the observations that the Committee made consequent to the study tour.

3.1 Day One of the Study Tour, Monday 2 October 2017 Day one of the study tour began with an introductory presentation by the State Secretary to the Minister of Children, the Elderly and Gender Equality, Pernilla Baralt, (State Secretary Baralt).
In her presentation State Secretary Baralt took the Committee through the agenda of Sweden’s feminist governments.

The presentation by State Secretary Baralt was followed by a presentation by Ambassador Per -Anders Sunesson (Ambassador Sunesson), the Swedish Ambassador At Large for Combatting Trafficking in Human Beings, focusing Sweden’s efforts in combating prostitution and human trafficking.
The last presentation by, Ambassador Ann Bernes, Ambassador for Gender Equality and Coordinator for Sweden’s Feminist Foreign Policy, centered on Sweden’s Feminist Foreign Policy and what this policy entails in practical and real terms.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 148 [Tuesday, 8 May 2018 3.1.1 Presentation by State Secretary to the Minister of Children, the Elderly and Gender Equality State Secretary Baralt explained that Sweden’s current government had declared itself a feminist government and this effectively means that gender equality is central to its priorities, particularly in relation to decision making and resource allocation.
She further explained that this also means government policies are gendered to achieve the following 4 goals: equal division of power and influence; economic equality; equal distribution of unpaid house and care work; and an end to gender based violence.

And a practical level, this mean that each Minister is required to have competence in equal opportunities and indicate how their respective portfolios will positively impact the equal opportunities goals.
The Minister of Finance, on the other hand, has the task of putting a cost to implementing equal opportunities in each government portfolio.

She added that it is further obligatory for heads of government departments to have competence in gender budgeting and equal opportunities.

Also according to State Secretary Baralt, in terms of resource allocation, each State Secretary (i.e.
the equivalent of a Deputy Minister in the South African Government system) is required to show how they will use their respective portfolio and mandate to contribute towards the equal opportunities goals.

And Members of Parliament also share in the obligation to work towards achieving the equal opportunities goals.
The State Secretary further informed the delegation the Swedish economy is a strong one because men and women have access to equal opportunities and the economy is tailored to benefit from both men and women.
She mentioned that changes to the Swedish policy, in this regard, came about after the Second World War, when Sweden was required to rebuilt its country and economy and the then Prime Minister required everyone to play a role in rebuilding the country and as women were now in the labour market, the state has to take care of children and the elderly.
She remarked that over the years, the policy has ensured that women and ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 149 men have the same power by applying systematic gender equality and gender mainstreaming in both the public and private sector.
She further remarked that the success of the policy, over the years, has been guided by partnerships with civil society, the implementation of various international gender equality commitments and more recently, support for the 2030 Agenda for Sustainable Development of 2015 (Agenda 2030) by the Swedish government.
As regards, the Swedish approach to prostitution, State Secretary Baralt informed the delegation that prior to the enactment of the Sex Purchase Act of 1999 (Sex Purchase Act or Act) a rigorous and robust debate took place on whether to criminalise prostitution or not.

She admitted that although the Swedish approach to prostitution is not perfect it assists people to realise that they risk too much in buying sex.
The approach also assists with achieving Agenda 2030, particularly the goal that speaks to each boy and girl having the same capacity and access to resources and promotes international conventions like Convention of the Elimination of All Forms of Discrimination Against Women of 1979 (CEDAW) and the Universal Declaration of Human Rights of 1948.
The State Secretary concluded her presentation by stating that although the majority of parental leave is taken by women, Swedish fathers are allocated a total of 3 months of paternity leave as government recognises the right of the child to both parents.

She also stated that Sweden is moving towards allocating equal leave to both men and women as younger fathers are asking for the right to be allocated more leave to enable them to be more present parents.
Further in concluding her presentation, the State Secretary stated that schools have an important and central role to play in educating both girls and boys, at a tender age, about issues relating to gender equality and equal opportunities.

She noted that most girls in Sweden think that they can become anything and the Prime Minister has consistently stated that every boy and girl in Sweden can fulfil their full potential and government constantly and consistently reiterates this.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 150 [Tuesday, 8 May 2018 3.1.2 Presentation by Ambassador At Large for Combatting Trafficking in Human Beings Ambassador Per – Anders Sunesson, the Swedish Ambassador At Large for Combatting Trafficking in Human Beings, commenced his presentation by informing the delegation that Sweden is a country of destination for trafficking, particularly for trafficking in persons to be engaged as berry pickers and street beggars (for e.g.
gypsies from Romania and Bulgaria are trafficked by criminal syndicates to beg on the streets of Sweden).

He added that a small amount of women, are also trafficked into Sweden for sexual purposes.

Ambassador Sunesson also informed the delegation that like South Africa, Sweden had ratified anti – trafficking instruments such as the Palermo Protocol which regulates trafficking.
At a regional level, Ambassador Sunesson indicated that Sweden had ratified the Council of Europe Convention on Trafficking of 2008 (Convention) and in terms of this Convention each Member State is expected to appoint a Rapporteur for Human Trafficking and National Coordinator for human trafficking.

The Convention has set up a monitoring system to supervise the implementation of its obligations consisting of two pillars – the panel of experts and the committee of parties.
Further according to Ambassador Sunesson, with a population of 10 million people, 290 municipalities and 21 provinces or regions, Sweden felt the need for a coordinated and multi-agency approach in addressing the issue of trafficking.

Take for instance the National Coordinator on Trafficking creates manuals on how to identify victims and run awareness campaigns and the regional coordinators in each region work directly with migration authorities and labour inspectors in combatting trafficking.
With respect to the Swedish model or approach to prostitution, Ambassador Sunesson explained that Sweden criminalises the buying of sex and decriminalises the selling of sex and the law, in this sense, focuses on the person buying sex not on the person selling sex.
He mentioned that the law came about following a debate on violence against women after research had shown that there is a strong connection or nexus between prostitution ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 151 and violence and prostitution and sexual abuse.
He further mentioned that the law is not intended to victimise women in prostitution but is intended rather to offer them assistance and is intended to make a clear statement, on behalf of government, that buying sex is a form of violence against women and shows that a sex buyer has no respect for women.
Hence a person convicted of buying sex, in Sweden, can lose his or her job loss or receive a criminal record and even lose his or her standing and good reputation in society as they are perceived as having little or no respect for women.

According to Ambassador Sunesson, the Sex Purchase Act, which promotes gender equality and human rights, has met the expectations of those in favour of it, as it has reduced street prostitution to less than half and has further changed the mind sets of Swedes.
And following the enactment of the law, very few countries are now finding it socially unacceptable for people to buy sex – Greek and Spain, for instance, are considering enacting a similar law and Italy, too, appears to be leaning towards the Swedish approach to prostitution.
Further according to Ambassador Sunesson, most police officers are in favour of the law as it has made the environment safe for prostitutes and since the enactment of the law no single violent crime has been committed against a prostitute in Sweden.

The Swedish approach also views prostitution as harming both the individual and society at large.
In his presentation, Ambassador Sunesson also informed the delegation that fairly recent research by the Nordic Council, looking at prostitution in Sweden, Denmark, Norway and Iceland, found that prostitution in both Denmark Norway had increased whereas in Sweden it had been reduced by half.

This has rendered Sweden a bad market for human trafficking, for sexual purposes, as most Swedes find it socially unacceptable for someone to buy sex.
Ambassador Sunesson, further shared with the delegation that since Germany took the decision to legalise prostitution, it is reported to have 400 000 prostitutes and 98% of the prostitutes working in German brothels are not from Germany.

He added that this is a clear indication that the brothel owner looks outside the country to meet the demand for prostitution in the country.
He further added that research has also shown ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 152 [Tuesday, 8 May 2018 that those in prostitution do not want to be in prostitution and most women in brothels are from low income countries and from vulnerable groupings.
The Ambassador further related that there is no evidence of increased physical violence against women in prostitution, in Sweden, and the power of brothel owners and pimps has been decreased if not diminished by the law – prostituted women and girls have more leverage because they can report a sex buyer to the police.
He also related that Sweden offers programmes for those wishing to exit prostitution and in most instances because many of the prostitutes are in the country illegally they are assisted to go back to their countries of origin.
In concluding his presentation, the Ambassador indicated that persons prosecuted for buying sex advance a number of reasons for buying sex including amongst others: getting a high on getting to control someone; wanting to try something seen in a porn movie; wanting to do something that the wife does not want to do; and loneliness.
Ambassador Sunesson further conceded that although the law does not get rid of prostitution, it has managed to reduce the demand for prostitution and change the mind sets of Swedes on the issue of buying sex.

He noted that it is mostly women that are advocating for human rights for sex workers and this is not surprising as sex work, worldwide, is estimated to have a turnaround per second of 3000 USD.
Ambassador Sunesson also informed the delegation that is not a human right to have sex particularly at someone else’s expense.
Further in concluding his presentation, the Ambassador, advised the delegation that the key question in deciding whether to criminalise or decriminalise prostitution has to be “what kind of society do you want to develop as a country.” 3.1.3 Presentation by the Ambassador for Gender Equality and Coordinator for Sweden’s Feminist Foreign Policy In her introductory remarks to the delegation, Ambassador Ann Bernes (Ambassador Bernes), the Swedish Ambassador for Gender Equality and Coordinator for Sweden’s Feminist Foreign Policy, explained that Sweden is the first country in the world to pursue a feminist foreign ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 153 policy (policy).
She further explained that Sweden chose to pursue a feminist foreign policy as it wants to see an end to all forms of discrimination against women and girls.

And the starting point of the policy is that gender equality is not a women’s issue but is an issue for everyone.
In her presentation to the delegation, Ambassador Bernes also described the policy, which was officially launched in 2014, as a visionary policy that seeks to strengthen the rights, representation and resources for all women and girls based on the reality in which they live in.

She informed the delegation that the policy can take many different forms as it is cognisant of the situation on the ground.
Further according to Ambassador Bernes, the policy is not static or readily defined but rather an approach or perspective that strengthens women’s rights, representation and resources by starting with the actual situation on the ground.

She highlighted that in pursuing this policy, Sweden has amongst others increased the dialogue with women’s organisations the world over and contributed to negotiations on gender equality within the United Nations and the European Union (EU).
Ambassador Bernes further related that the Swedish feminist foreign policy is based on the premise that you cannot have peace, security and development if half of the world’s population is excluded from the equation.

And as such the feminist perspective has to be prominent in everything and not just in relation to rights and foreign aid.

The feminist perspective has to be prominent in the formulation of major policies such as foreign security policies and international trade policies.
Ambassador Bernes acknowledged that the policy is not a fixed package and can mean many different things in different places and as such, it is rather a perspective for analysing and finding solutions to common problems.

She further acknowledged that in areas where there might be not be resources and representation, goals have been ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 154 [Tuesday, 8 May 2018 formulated that will talk to such areas.
She also informed the delegation that the policy aims to achieve the following for all women and girls: full enjoyment of human rights; freedom from physical, psychological and sexual violence; participation in preventing and resolving conflicts; and post-conflict peacebuilding; political participation and influence in all areas of society; economic rights and empowerment; and sexual and reproductive health and rights.
A seventh objective has been added, which asks whether they are resources to realise the objectives of the Sweden feminist foreign policy.

Further according to Ambassador Bernes, implementation of the policy in Sweden has been characterised by the following key components: leadership, ownership, governance and support.
The leadership component of implementation of the policy, has been clear and consistent right from the launch of the policy spreading quickly from a political level to other management levels.

And certain managers have participated in a special Gender Coach Programme.

The ownership component was established when all staff were invited to contribute their thoughts on the policy.

The response was considerable and was used as a basis to formulate the policy’s action plan.
The governance component has taken place since November 2015 through the action plan for the policy, which has been incorporated into governance and updated annually.

The support component of implementation of the policy, has provided a coordination function assisting with communication, training and skills development in consultation with focal points at all departments.
In concluding her presentation to the delegation Ambassador Bernes stated despite only being place for almost 3 years, the policy has already made its mark at a multilateral, regional and bilateral level and countries such as Canada and United Kingdom have shown a keen interest in the Swedish feminist foreign policy.

Canada has, for instance, launched a feminist development cooperation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 155 3.2 Day Two, Tuesday 3 October 2017 During day two of the study tour, Tuesday 3 October 2017, the delegation took notes and learned from the three presentations.

The first presentation was made by the Chief Public Prosecutor, Ms Lisa Tamm, together with the Senior Public Prosecutor, Mr Lars Argren.
The second presentation was made by the National Rapporteur on Trafficking in Human Beings, Ms Kasja Wahlberg, of the Swedish Prosecution Authority.

The last presentation, to the delegation, was made by Honourable Carina Ohlsson, a Swedish Parliamentarian.
3.2.1 Presentation by the Chief Public Prosecutor and Senior Public Prosecutor of the Swedish Prosecution Authority Chief Prosecutor, Ms Lisa Tamm (Ms Tamm or Chief Prosecutor Tamm) and Senior Prosecutor, Mr Lars Argen (Mr Argen) of the Swedish Prosecution Authority informed the delegation that the Sex Purchase Act is a gender neutral act that criminalises not only the buying of sex but also attempting to buy sex and helping someone to buy sex and this makes the Act a lot more effective.
They further stated that payment for sex, in terms of the Act does not need to be payment in monetary terms but included payment in kind.

In their presentation to the delegation Ms Tamm and Mr Lars also indicated that the buying of sex is and parcel part of human trafficking and the sex buyer is the last link in the human trafficking chain.

As such, the Swedish Prosecution Authority (SPA) takes the view that money from prostitution feeds trafficking and other forms of organised crime.
She noted that the current penalty for a person caught buying sex is a fine of up to 50 days (equivalent to an amount between 500 and 1000 Euros) and the SPA was now pushing for the imposition of higher sentences than a fine.

The offence of buying sex also carries with it a conditional sentence however no one has yet been sent to prison for buying sex.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 156 [Tuesday, 8 May 2018 Chief Prosecutor Tamm further told the delegation that the effects of the law have been to promote and foster gender equality and human rights in Swedish society and it should be borne in mind that the law has nothing to do with morality or what it is ethical and is instead an equality law that seeks to promote gender equality and protecting the rights of women who are engaged in prostitution.
And in this sense the law sends the message that gender equality is important.

Ms Tamm also described the law as “a money law” given that the money involved in prostitution is not taxed and by prosecuting the sex buyer the SPA ensures that the government yields some form of return.

Chief Prosecutor Tamm further explained that Swedish policy does not perceive prostitution as a mutual act or an act done out of one’s free will.
But rather as an act where one party is being exploited for the benefit and enjoyment of another party.

More importantly, the law does not recognise the right to have sex as a human right.

As regards the demographic profile of sex buyers in Sweden, she told the delegation that sex buyers included sex addicts, lonely or disabled persons, persons seeking diversity in the sexual life and additional sex.
She further told the delegation that most sex buyers are young and in the 20s and most of them are foreign nationals.

This means foreign nationals tend to buy sex more than the Swedes.

She added that 70% of sex buyers are in relationships.

Ms Tamm also emphasised that the law has managed to change Swedish perceptions on buying sex because buying sex is seen as shameful act in Swedish society and sex buyers are even given a derogatory name which literally means an ugly cod looking like fish.
In their presentation, Ms Tamm and Mr Argen, also explained that the police commonly locate and apprehend sex buyers by pretending to be potential sex buyers.
They further indicated that the SPA gathered the evidence against sex buyers from, amongst others, apartments; cars; hotels; adverts place on the internet; surveillance records and through interviews with victims and witnesses, police officers and social workers; and documented evidence (such as photos, film, wiretapping and money transfer transactions).

They added that any successful apprehension and prosecution of sex buyers cannot be done without detailed coordination with social services.
The social worker focusses on the victim (by offering the victim shelter, counselling, access to medical treatment and support during the trial) and the sex buyer (assisting the sex buyer to stop buying sex).
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 157 Further according to Ms Tamm the SPA together with the Swedish Police Authority have also educated those working in hotels to detect prostitution and this has resulted in women engaged in prostitution choosing to stay in rented apartments such as those advertised on Air B ‘n B.
As regards new trends in prostitution, Ms Tamm related that a major trend, in Sweden, is that sex buyers are becoming younger (and many of them are from other countries) and older men are also into buying young men.

She stated that another growing trend is that victims of prostitution are instructed by their pimps to say they are independent and prostitution now involves lots of money including biticons.
Ms Tamm advised the delegation that in order to implement a law of this nature the police will require extensive intelligence and surveillance capacity.

She further advised that there is also a further need for specialised police, prosecutors and judges.
She pointed out that Sweden has specialised prosecutors and polices unit but there is a need for specialised judges and the law can be enhanced, by a supplementary law forbidding Swedes to buy sex abroad just as Norwegians are not permitted to buy sex abroad.

As a case in point she also mentioned that France had enacted a similar law over a year and half ago (i.e.
April 2016) and had made the law broader by establishing specialised units to enforce the law and impose other forms of reprimand for offenders other than penalties.

The French law, for instance, requires buyers to undergo compulsory courses for sex buyers intended deter them from buying sex.

In concluding their presentation, Ms Tamm reiterated that Sweden does not view prostitution as mutual sex and emphasised that the criminal act lies with the sex buyer giving the prostitute money to have sex with him.
Further in concluding their presentation, Ms Tamm and Mr Argen, stated the majority of victims of prostitution in Sweden come from vulnerable backgrounds and are aware of the fact that it is better to be a prostitute in Sweden than in their countries of origin.

Of particular significance they both highlighted that a lot of the prostitutes in Sweden originate from Eastern European countries such as Estonia, Lithuania, Poland and Romania and some are even from Nigeria.
And most women engaged in sex not are not more than 30 years of age.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 158 [Tuesday, 8 May 2018 3.2.2 Presentation by the National Rapporteur on Trafficking in Human Beings In her presentation to the delegation, the National Rapporteur on Trafficking in Human Beings, Detective Superintendent, Kajsa Wahlberg (Detective Wahlberg) informed the delegation that as the National Rapporteur on Trafficking in Human Beings her primary duty is to collect, analyse and process data about trafficking in human beings into and through Sweden.
This duty includes inter alia conducting an assessment of Swedish trends in trafficking and working together with the prostitution units in Stockholm and the trafficking units in Malmo, Stockholm and Gothenburg.

She also informed the delegation she is also charged with training police officers on trafficking, namely on the rights of victims of trafficking; how to identify a victim of trafficking; and on having a general understanding of trafficking.
Detective Wahlberg further explained that she is required to submit an annual report to the Swedish government and give recommendations to the government on how to uphold and protect the rights of victims of trafficking.

Detective Wahlberg further told the delegation that Sweden was the first country in the EU to appoint a National Rapporteur in terms of the relevant provisions of the Council of Europe Convention on Action Against Trafficking in Human Beings of 2005.
She further reiterated that, in Sweden, prostitution is viewed as a form of violence against women and a threat to gender equality.

She further mentioned that Sweden is bound, as a signatory of international instruments such as CEDAW, to observe and uphold the human rights of prostituted women.

Detective Wahlberg described the trafficking situation in Sweden as involving mostly women and girls who are trafficked through Sweden to neighbouring countries such as Norway, Denmark and Finland.
She further indicated that these women and girls are trafficked from countries such as Romania, Nigeria, Lithuania, Bulgaria, Russia and Poland.

Detective Wahlberg also pointed out that they have information that women and children from Romania and Bulgaria are trafficked into Sweden for purposes of forced begging, committing thefts and sex.

She noted that in instances where men are trafficked, they are trafficked, often from Bulgaria and Romania, for purposes of forced labour and street begging.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 159 In her presentation Detective Wahlberg also touched on the Sex Purchase Act and revealed that the Swedish government spent a total of 8 million SEK for its initial implementation and later, between 2004 and 2006, allocated an additional 30 million SEK for additional resources to address the issues of trafficking and law enforcement after a team of prosecutors, high ranking police officers presented a case for resources to be allocated for combatting trafficking.
And out of the 30 million SEK allocated an amount of 10 million SEK was spent on training the police in this respect.

Also according to Detective Wahlberg, between 2008 and 2011, the Swedish further allocated 40 million SEK for a related Government Action Plan.
She added that most police officers initially had a negative attitude towards the Swedish approach to prostitution as they took the view that prostitution is a private matter and sympathised with offender and did not want to be responsible for breaking up the offender’s marriage.

However, as the correlation between prostitution and other crimes such as trafficking, drug use and violence starting emerging, more and more police officers started warming up to the approach.
Detective Wahlberg further mentioned that in 2010, the Act was evaluated and found to have hampered the demand for prostitution and assisted the authorities to deal with the trafficking aspects of prostitution.

She highlighted that since the introduction of the law, not a single prostitute has been murdered in Sweden as compared to Germany where prostitution is legal however since 2002, 5000 women (in prostitution) are reported to have been murdered.
Detective Wahlberg also informed the delegation that between 2011 and 2015, the SPA secured a total 1549 convictions and 2990 police reports were made in relation to the buying of sex.

She emphasised that today street prostitution in Sweden has reduced and on any given night there are 10 to 15 women engaged in prostitution on the streets of Stockholm and 15 to 20 women over the weekend.

She further accentuated that 75% of women engaged in prostitution originate from other countries.
Further in presentation, Detective Wahlberg, stressed that the overall stigma associated with prostitution and buying sex has also helped deter persons from buying sex as persons caught buying sex are likely to be ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 160 [Tuesday, 8 May 2018 fired from work if such a person is, for example, a police officer.
As a case in point she gave the example of a judge of the court of appeal who was caught buying sex and was later demoted to a lower division court.

In concluding her presentation, she indicated that the law has undergone a review processes and there is a proposal to have varying forms of punishment ranging from 6 months for a normal offence and up to1 year for a grave or grievous offence (e.g.

where a person buys sex from a person with a physical and mental handicap).
In concluding her presentation, Detective Wahlberg stated that the Act has a benefits for victims in that victims can freely give statements to the police and are further entitled to receive support from social services.

She also added that the Act benefits society as a whole in that it has hampered the prostitution market in Sweden – less clients equals less demand.

The Act has also changed Swedish attitudes on prostitution and has rendered Sweden less attractive for traffickers.
The Act has also created a benefit for the court in that the all actors participate in the court hearing.

Further in concluding her presentation, Detective Wahlberg informed the delegation a number of arguments were advanced against the Act, especially when it was first passed, however none of these arguments have proved to be valid to date.
These arguments included the following: prostitution will go underground; violence against women in prostitution will increase; Swedish men will go abroad to buy sex; the market for women in prostitution will be destroyed; and the problem of prostitution will be exported to neighbouring countries.
3.2.3 Presentation by Honourable Carina Ohlsson Hon Carina Ohlsson (Hon Ohlsson), a Member of the Swedish Parliament, informed the delegation that besides being a Swedish Parliamentarian sitting on the Committee on Social Insurance (dealing with pension benefits, migration, social security contributions and family issues), she is also the President of Women’s Association (Association) of the ruling Social Democratic Party and a former head of a civil society organisation on gender empowerment.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 161 In her presentation Hon Ohlsson stated that the Association actively participated in the national debate on whether to criminalise the buying of sex prior to the enactment of the Sex Purchase Act.

In this respect, she informed the delegation that the Association together with other interested role players looked at a number of issues in trying to find the best way to combat prostitution in Sweden.
She further indicated that during the national debate the then Minister of Justice was not keen on the law and the then Minister of Gender Equality is the one who pushed for the introduction of the legislation.

She also noted that almost two decades into the law, Sweden has influenced countries such as Norway, France, Canada and Ireland to adopt its legislative approach and international organisations such as the European Parliament have lauded the Swedish approach to prostitution.
Moreover, there is a general view in Swedish that prostitution is a form of violence against women and that if you combat trafficking you also combat prostitution as they represent both sides of the coin.

She also mentioned that mostly Eastern Europe and African women were involved in prostitution in Sweden.

The delegation also learned, from the presentation by Hon Ohlsson, that pornography is not included in the Swedish law criminalising the buying of sex.
However, notwithstanding this, the issue recently came up at a Social Democrat Congress and discussions have taken place that are aimed at including it in the future, especially since most of the women organisations are expressing concerns that it has been excluded from the law and are exploring the possibility of including it as it fuels the demand for prostitution.
Hon Ohlsson further indicated that she is positive that one day that the legislation in Sweden will criminalise pornography as is the case in countries such as England.

She concluded her presentation by stating that since the inception of the Act, there has not been a single political party that has wanted to do away with the law.
And this has encouraged them as legislators, to look into having tougher legislation around the issues of prostitution, ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 162 [Tuesday, 8 May 2018 specifically at enacting legislation which will punish Swedes for buying sex abroad as is the case in Norway.

She added that legislative reforms in this regard, will also see an increase in the fines and convictions for buying sex.
Also of particular importance, Hon Ohlsson informed the delegation that prostitution is big business in certain quarters of the world and as such there is economic pressure in those parts of the world to ensure prostitution remains legal such as in the United States State of Nevada where prostitution is legalised due to the strong financial and political interest in it.
She added that despite research showing that prostitution is not necessarily a choice and 9 out 10 women in prostitution, wish to exit it, there are institutions like the George Soros Foundation which are opposed to the Swedish law or approach and even fund research aimed at showing that the Swedish law or approach to prostitution denies women the right to engage in sex work.
3.3 Day Three, Wednesday 4 October 2017 Day three of the study tour saw the delegation taking notes and learning from presentations from the National Coordinator for Trafficking and Prostitution; the Swedish Civil Society Platform Against Human Trafficking and the Swedish Chancellor of Justice and Professor Lena Holmqvist.
3.3.1 Presentation by the National Coordinator for Trafficking and Prostitution The presentation by the National Coordinator Against Trafficking and Prostitution (National Coordinator), Mr Patrik Cederlof, focussed on sharing background information with the delegation on the structures and coordination in involved in preventing and combatting prostitution and human trafficking in Sweden.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 163 In his presentation the National Coordinator informed the delegation that Sweden has a largely decentralised administrative system that is characterised by broad administrative independence and composed of 21 counties, 290 municipalities and 7 police districts.
The decentralisation of Sweden’s administration, in this sense, has also meant there are social services units in all 290 units and, unlike in other countries, these units are not NGO driven.
He further explained that the Office of the National Coordinator (Office) was established in 2009 as part of the previous Action Plan Against Prostitution and Trafficking and is charged with ensuring national coordination in working against prostitution and trafficking The Office further runs the Rehabilitation Program and Safe Return Programs, established in partnership with the International Organisation for Migration (IOM), which programs are intended to benefit victims of prostitution and human trafficking.
In addition to ensuring that there is a coordinated approach to combatting trafficking and prostitution in Sweden and running the Rehabilitation Program and Safe Return Programs, the National Coordinator is also responsible for running a number of awareness campaigns using various media platforms including billboards adverts aimed at dissuading Swedes from, inter alia, buying sex at home and when on holiday outside the country and engaging in forced labour practices.
The delegation was also informed by the National Coordinator that the establishment of the Office, began with the establishment of National Taskforce Against Trafficking in Human Beings (Taskforce).

The Taskforce includes inter alia the National Police; the Specialised Police Units in Stockholm, Gothenburg and Malmo; BOSS Unit; Border Police; Office of the Prosecutor; the Swedish Migration Agency; Swedish Tax Authority and the Work Environment Agency.
The Taskforce is also the first point of contact and it adopts a multidisciplinary holistic approach in offering direct support to agencies such as NGOs in operational cases via phone, email and personal interactions.

And further serves as a national reference group, at all levels, for developing training methods and materials and also sets up or participates in trainings where the Taskforce team gives operational hands on input at a local, national and international level.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 164 [Tuesday, 8 May 2018 The National Coordinator also mentioned that the County Administrative working Group (LAMP) is the link between the national and regional in the fight against prostitution and human trafficking, as it is responsible for increasing knowledge at a local level in the issues of prostitution and human trafficking.
He further indicated that county or regional coordinators are appointed to ensure a seamless and holistic approach, at county and regional level, that sees the police and social services working very closely together.

He revealed that there are currently 6 county or regional coordinators and they help to ensure the social welfare for the victim is strengthened at the beginning of any case as they offer direct support in cases of prostitution and human trafficking.
In the course of the presentation by the National Coordinator, the delegation further learned that the 20 plus NGOs working in the areas of prostitution and human trafficking, in Sweden, are required to be part of a platform that ensures there is only one voice speaking for NGOs across Sweden (and not many voices).
The platform is known as the Swedish Civil Society Platform Against Human Trafficking and ensures that there is no duplication of work amongst the various NGOs and improves the effectiveness of the dialogue between the state and NGOs.
The delegation further learned that Sweden has a strong labour market and after opening up its borders to Bulgaria and Romania in 2007, the country experienced an influx of persons who are been trafficked into Sweden and subsequently forced to be street beggars or berry pickers (Sweden gives individuals the right to pick berries or mushrooms and sell them without paying taxes if they make less than 700 SEK from the sale of these mushrooms or berries).
3.3.2 Presentation by the Swedish Civil Society Platform Against Human Trafficking Ms Madeleine Sundell (Ms Sundell) made a presentation to the delegation on behalf of the Swedish Civil Society Platform Against Human Trafficking (Platform) started in 2013 and is the umbrella NGO for several NGO’s working with the victims of prostitution and human trafficking.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 165 In her presentation Ms Sundell shared some of the Platform’s findings around human trafficking in Sweden.

In this respect she reported that human trafficking is mostly observed in the 3 biggest cities in Sweden, namely Stockholm, Gothenburg and Malmo and it occurs in all forms – including sexual and labour exploitation, forced begging.
And the most commonly identified form of trafficking in Sweden is trafficking for sexual purposes however since 2010 trafficking for purposes of forced labour, begging and criminal activities have also emerged as a growing trend and the demand sees people from Eastern and Central Europe, the Middle East (particularly from Syria and Afghanistan) and Northern Africa being trafficked into Sweden.
Ms Sundell also indicated that there is also an increase in the number of unaccompanied minors and pregnant women being trafficked into and through Sweden.

In her presentation, Ms Sundell also acknowledged the work done by the Group of Experts on Action against Trafficking in Human Beings (GRETA) in monitoring the implementation of the Council of Europe Convention on Action Against Trafficking in Human Beings of 2005 (Convention) by Member States.
Ms Sundell also applauded the National Support Programme (NSP), initiated by the County Administrative Board of Stockholm.

The NSP is intended to provide improved and additional support to VOTs and although it is a government funded programme, it is run by the Platform and runs parallel to support measures offered under the Transnational Referral Mechanism and the Return Programme.

She further informed the delegation that NSP was contributing towards the success of GRETA’s work in Sweden.
Ms Sundell also stated that even though the Sex Purchase Act is an effective starting tool for combatting trafficking it does however need to augmented by extensive exit packages or mechanisms, alternatives to trafficking and research into migration laws and how they enable the exploitation of human beings.
Further according to Ms Sundell, official data from 2015, shows that there are low numbers for convictions for trafficking - 2 persons charged for trafficking and 2 convicted for trafficking and 179 trafficking crimes were reported to the police.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 166 [Tuesday, 8 May 2018 3.3.3 Presentation by the Chancellor of Justice and Professor Lena Holmqvist In her presentation, the Chancellor of Justice of Sweden, Her Excellency, Anna Skarhed informed the delegation that the office of Chancellor of Justice was established in 1713 and explained that its function is by nature a hybrid between a government lawyer and ombudsman.
In this respect, she also outlined the functions of her Officer as including supervision over the state and municipalities; deciding on compensation for damages caused by the failure of authorities; offering legal representation to the state in court; offering legal advice to the state; and exclusive public prosecution in cases concerning freedom of the press.
The Chancellor further reiterated that gender equality is at the core of the Sex Purchase Act and prostitution is considered illegal in Sweden because it is viewed as going against the notions of gender equality.

She also told the delegation that more than 75% of people engaged in prostitution, in Sweden, are from Eastern and Southern Europe and constitute some of the marginalised people in society.

She added that prostitution is incompatible with international human rights principles.
In her presentation the Chancellor, also highlighted that the root of prostitution lies in the demand for prostitution and this has rendered prostitution a big business that is connected to other criminal activities such as violence, drug dealing and human trafficking.

She further added that prostitution cannot be separated from crimes such as trafficking and to normalise prostitution is to normalise sexual discrimination and violence against women.
The Chancellor also informed the delegation that the law against prostitution has ensured that no single prostitute is killed whereas in Germany, where prostitution is legalised, it is reported that over the last 10 years, 70 prostitutes have been murdered.
She further mentioned that the ban on buying sex was evaluated in July 2010 and the report on this evaluation showed that the ban resulted in the halving of the number of persons exploited in street prostitution since 1999 whereas in 2008 Denmark and Norway, for instance, had 3 times as many individuals ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 167 in street prostitution.
The ban has also made it less attractive to establish a more extensive prostitution business in Sweden and has not increased the incidents of indoor prostitution.

The latter was proven by a survey that concluded that there is no indication that prostitution in Sweden has gone underground and prostitution in Sweden, unlike in comparable countries, has not increased since 1999.
Moreover, a study conducted in 1999, after the ban was imposed, showed that 76% of respondents were in favour of the prohibition of the purchase of sexual services and support for the criminalisation was also above 70% in two later studies.

This goes to show the ban has had a significant normative effect on Swedish society and a deterrent effect on sex buyers.
When the ban was introduced concerns were raised that it would adversely affect those exploited in prostitution and prostitution will be driven underground thereby increasing the overall risk of abuse for prostitutes however these concerns have proven to be unfounded.

Instead, the ban has further discouraged the establishment of organised crime such as human trafficking in Sweden and this is important given that in Europe alone everyday 140 000 individuals are victims of trafficking.
The Chancellor concluded her presentation in stating that the ban has had the intended effects in that it has discouraged prospective buyers; reduced the number of customers and thereby the number of exploited person; and made the business less profitable for pimps and brothels.

She also revealed that before the ban not all political parties were in favour of the law but now all political parties are in favour of the law.
The Chancellor further concluded that when the Sex Purchase Act came into effect on 1 January 1999, Sweden became the first country in the world to prohibit the purchase of sexual services however the wording of the Sex Purchase Act will need to be reviewed because it gives the impression that the purchase of sex is a service and this is not the case.

3.4 Day Four, Thursday 5 October 2017 During the penultimate day of the study tour, the delegation took notes and learned from the four presentations.
The first presentation was made by Detective Inspector Per Englund of the Trafficking Unit of the ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 168 [Tuesday, 8 May 2018 National Operations Department in the Swedish Police Authority.
The second presentation was made to the delegation by Ms Josefine Appelquist and Ms Anna Sander, founders of Talita, a non-profit organisation offering both acute and long term support to women who have been exploited in prostitution, pornography or human trafficking for sexual purposes.
The last two presentations made to the delegation were by Ms Marie Johansson of KAST – Mottagnungen, a treatment centre for people who buy sex and a representative from Mike Mottagningen, a treatment centre for people who get paid to have sex or are using sex to hurt themselves.
3.4.1 Presentation by Detective Inspector Per Englund of the Trafficking Unit at the National Operations Department Detective Inspector Per Englund (Detective Inspector) began his presentation by informing the delegation that prior to 2015, there were 200 independent police regions in Sweden however after 2015 there are only 7 police regions and 1 prosecution group.
He added that before 2015, county police did not look beyond the Swedish borders when fighting crime and this has now changed because of the centralisation of the Swedish administrative system as information beyond county borders is readily available.

Further in his opening remarks, the Detective Inspector outlined that the Palermo Protocol of 2000, which Sweden has ratified, requires that Sweden prevent, protect and prosecute human trafficking.
He also went onto to outline the steps that the Swedish Police Authority takes in successfully prosecuting human trafficking, which steps include the theoretical and operative intelligence training of police on the Sex Purchase Act and the extensive surveillance and monitoring of communications (this entails court authorised wiretapping, camera surveillance, intercepting of communication and room surveillance).
Detective Inspector Per Englund also informed the delegation that prostitution has not gone underground and is now on the internet as prostitutes have resorted to posting adverts on the internet.

Sex buyers ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 169 according to the Detective Inspector are mainly men and include priests, police officers, family man, politicians and prosecutors.
He cited as an example the arrest and conviction of the former Swedish Chief Prosecutor for Internal Affairs as a sex buyer.

As regards the effectiveness of the Sex Purchase Act, he stated that the legislation is effective and needs an interdisciplinary approach or cooperation between state authorities, NGOs and social services for its successful implementation.
He further stated that the legislation benefits the victim or prostitute, court processes, as well as society as a whole and this is evidenced by the fact that they are very few prostitutes in Sweden.

In concluding his presentation, the Detective Inspector informed the delegation that the vast majority of the Swedish public is in great support of the legislation and this has contributed to the success of the legislation.
Further in concluding his presentation, Detective Inspector Per Englund stated that prostitutes in Sweden have been victims of violent crimes such as robbery and rape but not murder.

3.4.2 Presentation by the of Talita The presentation by the founders of Talita, Ms Appelquist and Ms Sander, informed the delegation that Talita is 20-year-old organisation (founded by specialised trauma therapists) that assists women who are exploited through pornography, sex trafficking and prostitution.
The presentation further revealed that Talita has shelters in Stockholm and Gothenburg and Romania and Mongolia and the treatment that is offered at these shelters strives for a holistic approach.

According to Ms Appelquist and Ms Sander, the problem of prostitution is a complex and multifaceted one and often involves women who have suffered certain traumas as children and this invariably affects their sense of value.
They added that it is important to see the whole picture or the whole woman in the process of offering treatment to a woman who has been engaged in prostitution.
They further informed the delegation that Talita has established a rehabilitation programme which includes inter alia offering women exiting prostitution safe housing; trauma therapy; and self- ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 170 [Tuesday, 8 May 2018 strengthening education (brain and memory, boundary settings, dealing with strong emotions, planning for the future, transition into independent living).
Talita’s programme also involves following these women for almost two years and ensuring that they have assistance 24 hours a day.

Given that some of the women are too afraid to go back to their countries and Talita assists them to seek asylum and also assists them to not be re-trafficked.
The rehabilitation programme that Talita employs has been evaluated by a leading Swedish University and the evaluation established that close to 100 percent of women who finish the programme do not go back to prostitution.

The rehabilitation programme is further premised on the notion that women who wish to exit prostitution should be supported the entire way (and not for part of the way) until they have the stability and the security.
The founders of Talita also shared with the delegation that that they had not encountered one single woman who chose to enter prostitution out of their own free will and women advance a range of reasons for entering prostitution which can be attributed to either external coercion or internal coercion.

Internal coercion is brought on by childhood traumas that has taught them to disassociate and not really be present in themselves and put themselves in violent positions.
In this sense, some of the women in prostitution are like people who are always cutting themselves up.

As an NGO, Talita also tends to adopt a flexible approach in relation to the assistance it offers to victims of prostitution or human trafficking.

As a case in point the founders cited an example of a woman from the Czech Republic who travelled to Sweden and decided to enter into prostitution so that she could pay off the huge debts that he husband had incurred through gambling.
Talita assisted the woman to exit prostitution and arranged to send her back to the Czech Republic and also sent her an amount of 500 Euros per month in assistance.

As regards the Swedish model or Nordic model to prostitution, the founders of Talita indicated that the Swedish approach is correct as it is on the side of the prostitute who is the weaker party in the equation.
The man has power over the prostitute in the form of money, status, physical strength whereas the prostitute has nothing - laws are meant to protect the weakest in society and this law does this.
Further according Ms Appelquist and Ms Sander, ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 171 Sweden did 30 years of research before passing the law and established that prostitution is a form of violence against women and women in prostitution are victims and the weaker party and as such need protection.
They added that the law has also changed attitudes and mentalities on prostitution and sends a strong message that prostitution is a form of violence against women and this the message trickles down to the women Talita works with and ensures the police and other professional treat the women in prostitution with respect and dignity.
The presentation also informed the delegation that Talita has a good relationship with police and the county administrative board as Ms Appelquist and Ms Sander indicated that the often police refer the women in prostitution to Talita.

During the presentation by Talita, members of the delegation were also told about the Reality Check Project which aims to increase the knowledge of young people about pornography which has become the primary source of sexual education for the majority of young people today.
The Project equips teachers, parents and youth leaders with knowledge on the dangers of pornography and a Project of this kind is much needed in Sweden as younger men are now buying sex and admit that they buy sex because they want to try the things that are fuelled by pornography.

This trend is concerning as research has shown that there are links between pornography and prostitution.
The presentation, by the founders of Talita, also lauded France for recently adopting the Swedish approach to prostitution and enacting a law that provides for the right of those engaged in prostitution to support services.

The French law also requires judges and lawyers to be specially trained in this regard and in one year into the law France has arrested over 1500 sex buyers.
3.4.3 Presentation by KAST Mottagningen In her brief presentation to the delegation, Ms Marie Johansson (Ms Johansson), of KAST –Mottagningen (KAST) informed the delegation that KAST specifically provides treatment to people who buy sex and are addicted to pornography and phone sex.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 172 [Tuesday, 8 May 2018 She also informed the delegation that, from 2000, KAST was initially consulting on the phone and in 2006, it began placing an emphasis on therapy and took a decision, in 2009, to work on various outreach initiatives.

Ms Johansson also stated that in May 2017, KAST started work with internet outreach and has had good results in this regard and has even put adverts in newspapers encouraging people to get treatment.
In her presentation Ms Johansson mentioned that KAST’s target groups includes adult surfers; strip clubs; phone sex and sex chatters; relatives of sex or pornography addicts; and couples (i.e.

counselling with relatives to cope with the trauma with relations who buy sex).

She related that people give different reasons for buying sex including anxiety; abuse; low self- esteem; and missing a father figure.
And KAST has realised that most of these people do not think about the problem and instead resort to dealing with the problem by buying sex.

She further related that KAST sees between 35 to 40 persons per month and younger persons are also making use of the services on offer at KAST.

She also revealed most of the people who receive treatment at KAST live a double life and love their wives and families – in fact 90% of persons who use KAST are married.
And most of them indicate that after they have bought sex they feel emptiness; anxiety; disgusted and filthy and have tried lots of time to stop on their own and have failed.

In closing her presentation, Ms Johansson, stated that most of the men who KAST helps stop buying sex after they have completed their treatment.
3.4.4 Presentation by Mika Mottagningen The presentation by the representative from Mika Mottagningen (Mika), a treatment centre for people who get paid to have sex or are using sex to hurt themselves, explained that the name the centre is named because Mika is a gender neutral name that applies to both men and women.

The representative from Mika also indicated that the centre counsels approximately 100 street prostitutes per year and employs 5 full time social workers.
Moreover, Mika’s target group is individuals who are 18 years and ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 173 older, live in Stockholm, have some lived experience of prostitution or have been exposed to human trafficking.

Mika also assist relatives of those who are receiving treatment.
The conditions attached to treatment at Mika are that treatment is voluntary, free of charge and subject to professional secrecy and persons receiving treatment can remain anonymous throughout the treatment process.

The type of services that Mika offers include support and counselling; practical help; medical assistance (i.e.

access to a midwife, gynaecologist and psychiatrist); and dissemination of knowledge.
Mika also conducts outreach programmes on street prostitution and internet related prostitution whereby social workers go out, at night, once a twice a week on the streets or they visit internet escort sites.

During these outreach programmes, the social workers working for Mika carry and hand out business cards that say nothing about prostitution and also invite people to contact Mika for treatment.
More than half of the people that the social workers from Mika meet are from outside the country – mostly Romanian girls and some Swedish girls.

The typical background of Mika’s target group is that most of the people that receive treatment at the centre were neglected as children; subjected to domestic violence, loneliness; dysfunctional family relations; or suffered some form of trauma, sexual abuse and rape or suffered some eating disorder.
The representative of Mika further informed the delegation that when the social workers at Mika ask their clients why they entered into prostitution, they give reasons such as money, revenge, self-harm, compulsion, searching for affirmation and acknowledgment.

The Mika approach is to use adapted, professional and respectful language when addressing or talking to clients and not to demoralise or condemn them.
The Mika approach also prizes time and patience and cooperation with other organs or agencies in society (e.g.

enable the clients who exit get a place to stay or study).

Mika also takes the view that the decision to enter into prostitution is not a free choice per se as it is always related to a specific context – either that a client was a victim of crime or experienced some economic, social and psychological disadvantage that compelled him or her to enter into prostitution.
Also of importance, Mika does not refer to its’ clients as victims given that this diminishes their status.

And more than 80% of clients left prostitution after receiving treatment from the centre.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 174 [Tuesday, 8 May 2018 3.5 Day Five, Friday 6 October 2017 On day five of the study tour the delegation interacted with Dr Wanjiku Kaime-Atterhog (Dr Kaime-Atterhog), Ph.

D, a researcher from Uppsala University.


Dr Kaime-Atterhog shared some of the findings made in past and ongoing research that she has conducted, in collaboration with other researcher, in relation to the Swedish model – namely the Preventing Demand for Sexual Exploitation in Europe (Desire Project).

In her interaction with the Committee, Dr Kaime- Atterhog also spoke on the doctoral research work she conducted and which culmintated in the establishment of the House of Plenty Foundation (HOPE Foundation).
The Preventing Demand for Sexual Exploitation in Europe The Preventing Demand for Sexual Exploitation in Europe (Project) is funded by the European Union’s Internal Security Fund and aims to generate a better understanding of the impact of different legislative and policy approaches on the prevalence of human trafficking.

The Project has five project partners – namely Belgium, the Netherlands, Sweden.
Poland and Croatia and is a comparative study that is focussed on four different approaches, policies and legal frameworks in Netherlands, Croatia, Poland and Sweden – Netherlands legalises sex work, Sweden criminalises sex buyers, Croatia criminalises sex workers and Poland is somwehere in between.

The Project further seeks to draw definitive conclusions on the best approach to take and whether there is a relationship between legislation and the policies on sex work and human trafficking.
The Project is based on the presumption that not all sex work is sexual exploitation and a form of trafficking human beings.

It instead assumes that there is a link between human trafficking and sex work when there is exploitation combined with an action and a means.
The agenda set by the research partners of the Project includes asking the following questions: ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 175 3.5.1 How do we understand terms such as demand, sexual exploitation and prevention?

3.5.2 What is relationship between different legislative approaches and their impact on the demand that fuels trafficking in human for sexual exploitation?

3.5.3 What legsilative models make sex workers feel safe?
3.5.4 What concrete evidence show that reducing the demand for sexual services can be used as a method to prevent human trafficking?

3.5.5 What avenues, other than law, may assist in limiting the demand for sexual exploitation?
The Project is further broken up into 5 work packages, namely: 3.5.6 Work Package 1: Development of a working understanding of key terms such as sexual exploitation, exploitation, prevention and demand; 3.5.7 Work Package 2: Conceptual mapping of laws and policies addressing sex work in the selected countries.

Examining the impact of the different laws on human trafficking.
3.5.8 Work Package 3: Empirical research to determine the perceptions of sex workers, consumers, law enforcers and the general public as to the different existing laws and policies; 3.5.9 Work Package 4: Analysis of alternative approaches including innovative ways to use technology in a manner that can facilitate prevention of human trafficking for sexual exploitation.
3.5.10 Work Package 5: Provide concrete, evidence based conclusions on how demand, which fuels trafficking in human beings for sexual exploitation, can be reduced as a method for prevention.

Consolidate recommendations for long term sustainable implementation of measures aimed at the reduction of the demand for sexual exploitation.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 176 [Tuesday, 8 May 2018 The project partners, of the Project, have at this stage completed Work Packages 1 and 2 and are presently carrying out Work Package 3 which entails conducting empirical research to determine the perceptions of sex workers, consumers, law enforcers and the general public as to the different existing laws and policies.
The Project has so far determined that how you define the term “sexual exploitation” is a key element to preventing and combatting the phenomenon.

However, the challenges to crafting an up to date and comprehensive definition of the term include that it is illegal in nature and therefore hard to study; it quickly adapts to changes in laws, policies, culture and markets; it carries its own complexity; and difficult to identify and prove.
Further according to the Project, sexual exploitation can take one of two forms – commercial and non- commercial sexual exploitation.

Commercial sexual exploitation refers to acts such as sex work, phone sex and pornography while non-commercial sexual exploitation refers to acts such as sexual abuse, incest and rape.
Moreover, because there are commonalities between the term and human trafficking, the term has to be defined in the context of human trafficking as it ensures that there is an emphasis on the abuse and the position of vulnerability that the trafficked person finds themselves in.
In other words, in defining the term, the persons lack of informed, conscious and independent consent to the unfair exploitation must be specifically present and the abuse of a position of vulnerability, trust or power as a means of exploitation must also be evident.
Work Package 1 of the Project has resulted in a definition of sexual exploitation within and beyond the context of human trafficking as “any actual or attempted interaction retrieval of sexual activity that leaves one party worse off (psychologically, physically and economically) than it was before the interaction and/or than it was entitled to or that is mutually beneficial but occurs in an “unfair” and/or “vulnerable” ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 177 context.” The Project has further recommended that, in defining “sexual exploitation”, policy models cover instances in which sexual exploitation occurs beyond the established realms; take into account the context of vulnerability and use a collaborative approach to prevention; define what constitutes an unfair interaction; and develop a holistic approach to prevention of sexual exploitation by using an individualistic model of responsibility.
House of Plenty The House of Plenty (HOPE) was established in 1997 when Dr Kaime- Atterhog conducted her doctoral research on street children and their care givers in Nakuru, Kenya.

The findings of her research showed that although there were many existing organisations that offered food, shelter and education, many children still returned to the streets and the number of street children continued to grow.
In the course of her doctoral research, Dr Kaime-Atterhog gained the children’s trust and they told her about their needs and how they would like these needs to be met.

The children also shared their hopes and dreams with her and further narrated that because they were mistreated in these organisations, they preferred to remain on the streets begging or engaging in prostitution rather than live with the abuse they experienced at these organisations.
It was on this basis that Dr Kaime- Atterhog along with the 12 street kids participating in her research, founded HOPE, a safe shelter for these children.

The shelter was managed by a house mother (responsible for the day to day upkeep of children) and also had an in-house teacher (responsible for home schooling the children) and social worker (responsible for taking care of the emotional needs of the children).
In addition, to establishing the shelter Dr Kaime-Atterhog also developed a training programme at Uppsala University, in Sweden, for caregivers working with marginalised children and held the first course, in April 1998, where she taught her methods on how to meet children’s ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 178 [Tuesday, 8 May 2018 needs, but to do it from the children’s perspective.
Her research and methods to rehabilitate and reintegrate street children into society eventually became an international training programme for caregivers in 13 countries in Africa (in countries such as South Africa, Tanzania and Kenya) and Asia (in countries such as Thailand, Cambodia and Vietnam).
So far, 150 caregivers from government agencies, NGOs and community based organisations including doctors, nurses, social workers, teachers, police officers from around the world have participated in her training programmes.

The training programmes were developed, by Dr Kaime- Atterhog, after months of observing caregivers and with the help of children under the care of caregivers.
The training programmes are aimed at changing attitudes and improving knowledge, skills and methods to enable caregivers to develop good working relationships with children and offer good quality care.
The trained caregivers, in turn, educate others in their respective countries and registered and established regional and national networks of caregivers, called the Africa/Asia Network of Caregivers (commonly referred to as ANoCC), and through which they can continue learning together and supporting each other and other caregivers to improve the quality of their work.
In 2012, Dr Kaime-Atterhog and others also established a self- sufficient vocational training institute for poor children and youth in Kenya.

The institute combines IT, English, Entrepreneurship and Performing Art to equip the children with theoretical and practical knowledge that makes them ready to compete in the job market, take on higher education or start their own business.
HOPE Social Innovation Methodology The HOPE Social Innovation Methodology (Methodology) is a research methodology that was developed by Dr Kaime-Atterhog in order to facilitate social innovation by creating a safe space, among and with the affected people, where social change can be expressed and understood.
The Methodology is premised on 3 grounding principles, namely: ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 179 3.5.11 Grounding Principle 1: Societal change is the ultimate impact (identify the stakeholders and get them to work towards common goals); 3.5.12 Grounding Principle 2: Societal change is a process driven by trust, co-creation and action (meet the affected community and identify the perceived challenges); and 3.5.13 Grounding Principle 3: Context specific (understand the context and define the problem).
A focal point of the Methodology is to research, rehabilitate and reintegrate affected individuals.

The Methodology also brings communities together to support rehabilitation and reintegration initiatives or projects and take ownership of them to ensure their success.

More importantly, it is adaptable and works whether implemented in collaboration with government initiatives, as is the case in Uganda or using a community based approach, as is the case in Kenya.
According to Dr Kaime-Atterhog, the Swedish model of partial decriminalisation may be adapted along with the HOPE Methodology to suit the African context and break the cycle of poverty and provide choices to affected individuals.

4.
4.

OBSERVATIONS AND KEY FINDINGS The Committee made the following observations on the bases of the presentations it received and its various engagements and interactions during the study tour: 4.1 Sweden’s current government has declared itself as a feminist government which means that gender equality and gender mainstreaming are central to its priorities.

4.2 Prior to the enactment of the Sex Purchase Act, a rigorous and robust debate took place, in Sweden, on whether or not to criminalise prostitution.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 180 [Tuesday, 8 May 2018 4.3 The Sex Purchase Act is a gender neutral act that criminalises not only the buying of sex but also an attempt to buy sex and helping someone to buy sex.

4.4 The Sex Purchase Act has nothing to do with morality or ethics.

It is instead an equality law that seeks to promote gender equality and protecting the rights of women who are engaged in prostitution.
4.5 Although the Sex Purchase Act has not managed to rid Sweden of prostitution, it has managed to reduce the demand for prostitution and change Swedish attitudes towards the issue of buying sex.
4.6 Swedish authorities, in particular the police authorities, initially had a negative attitude towards the Sex Purchase Act as they took the view that prostitution is a private matter however as the correlation between prostitution and other crimes such as trafficking, drug use and violence starting emerging, more and more police officers started warming up to the approach.
4.7 Sweden’s feminist foreign policy is a visionary policy that is aimed at promoting women’s and girls’ rights, representation and resources based on the reality in which they live in.

4.8 The majority of victims of prostitution in Sweden originate from Eastern European countries such as Estonia, Lithuania, Poland and Romania and some are even from the African continent.
4.9 Sweden is a country of destination for trafficking, particularly for trafficking in persons for purposes of forced labour as berry pickers and street beggars (for e.g.

gypsies from Romania and Bulgaria are trafficked by criminal syndicates to beg on the streets of Sweden).

4.10 The buying of sex, in Sweden, is viewed as part and parcel part of human trafficking by Swedish authorities and the sex buyer is seen as the last link in the chain of human trafficking.
Moreover, money from prostitution is seen as feeding trafficking and other forms of organised crime.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 181 4.11 Sweden was the first country, within the European Union, to appoint a National Rapporteur in terms of the Council of Europe Convention on Action Against Trafficking in Human Beings.
4.12 The coordinated and multi-agency approach that Swedish authorities have adopted in addressing the issues of prostitution and trafficking has strengthened the implementation and impact of Sex Purchase Act.

This approach requires, amongst other things, having specialised police units, prosecutors and social workers and further entails NGOs offering extensive programmes for those wishing to exit prostitution and assisting them to go back to their countries of origin.
4.13 There are currently more than 20 NGOs, in Sweden, working with victims of prostitution and human trafficking and these NGOs are part of the Swedish Civil Society Platform Against Trafficking (Platform).

The Platform is actively involved, in working hand in hand with the Swedish authorities, in combatting and preventing prostitution and human trafficking.
4.14 Sweden has influenced countries such as Norway, France, Canada and Ireland to adopt its legislative approach to prostitution and international organisations such as the European Parliament have lauded the Swedish approach to prostitution.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 182 [Tuesday, 8 May 2018 2.

FINAL REPORT OF THE SELECT COMMITTEE ON PETITIONS AND EXECUTIVE UNDERTAKINGS ON THE HEARING OF THE EMBRACE DIGNITY PETITION DATED 2 MAY 2018 1.
BACKGROUND The Select Committee on Petitions and Executive Undertakings (Committee) having considered the Embrace Dignity Petition, received by the Office of the Chairperson of the National Council of Provinces (NCOP) on 10 December 2014 and referred to the Committee on 24 April 2015, reports as follows: The Embrace Dignity Petition (petition) is submitted by Embrace Dignity, a non-profit organisation, which advocates for legal reform to end prostitution and sex trafficking.
Embrace Dignity further advocates for the provision of adequate support services to women seeking exit from prostitution.

In the petition submitted to the NCOP, Embrace Dignity, contends that notwithstanding the enactment of progressive legislation, policies and the ratification of international agreements on gender equality and violence against women, South Africa still lags behind in the implementation of these pieces of legislation, policies and international agreements.
And the dignity of women and girls is violated by the poor implementation of such legislation and policies, and the poor provision and resourcing of services in relation to the sexual violence, abuse and economic oppression experienced by South African women and girls.

In the petition, Embrace Dignity, further contends that there is a general lack of understanding of the harms of prostitution and its links to sex trafficking.
It further asserts that contrary to popular belief, prostitution is not always a “free choice” and affects, mainly women and girls who find themselves in dire socio-economic ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 183 circumstances.

Lastly, Embrace Dignity asserts that prostitution has harmful effects on women and the link between prostitution and sex trafficking cannot be undermined.
And further provides that it seeks the intervention of the Parliament in establishing a multi-party committee, constituting both Houses of Parliament, to investigate the following: 1.1 1.2 1.3 1.4 The situation of women (and men) in prostitution; The factors which determine the demand for prostitution; The factors which provide and support the demand; and The factors that perpetuate and facilitate the trafficking of women and girls.
The petition requests the NCOP to investigate the legal options identified by the South African Law Reform Commission (SALRC) and make recommendations for legislation that will do the following: 1.5 Reduce and ultimately eliminate oppression in the form of prostitution; 1.6 Address the demand for prostitution; and 1.7 Implement and resource programmes to support the exit and full social and economic integration of the victims of prostitution and sex trafficking back into the community.

2.
2.

HEARING On 2 March 2016, the Committee held a hearing on the petition at Parliament.

The purpose of the hearing was to afford Embrace Dignity and other implicated stakeholders the opportunity to make first hand oral submissions, to the Committee, on the petition.
Ensuing its consideration of the petition, the Committee tabled a preliminary report in the House on the petition, wherein it recommended that it undertake a study tour to Sweden aimed at broadening its understanding and experience of the Swedish approach (commonly referred ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 184 [Tuesday, 8 May 2018 to as the partial decriminalization approach) to the issues of prostitution and trafficking.
The Committee undertook this study tour, from 2 to 6 October 2017 in Stockholm, Sweden and thereafter compiled a comprehensive 36- page report on the lessons it garnered during the study tour.

Refer to the study tour report attached hereto as Annexure A.

3.
COMMITTEE MEMBERS AND OFFICIALS The following Committee Members attended the hearing on the petition: 3.1 Hon S G Thobejane, ANC, Limpopo (Chairperson of the Committee); 3.2 Hon M J Mohapi, ANC, Free State; 3.3 Hon G M Manopole, ANC, Northern Cape; 3.4 Hon T Wana, ANC, Eastern Cape; 3.5 Hon D L Ximbi, ANC, Western Cape; 3.6 Hon M Chetty, DA, Kwa-Zulu Natal; and 3.7 Hon B Engelbrecht, DA, Gauteng; The Committee Members present at the hearing on the petition were supported by the following Committee officials: 3.8 Mr N Mkhize, the Committee Secretary; 3.9 Dr M Gondwe, the Committee Content Advisor; 3.10 Adv T Sterris, the Committee Researcher; 3.11 Ms A Zindlani, the Committee Assistant, and 3.12 Mrs N Fakier, Executive Secretary.
4.
STAKEHOLDERS The hearing on the petition was attended by the following relevant stakeholders: 4.1 Mr. J Routledge, Ms G Grootboom and Ms S Mentor, representatives of Embrace Dignity; ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 185 4.2 Ms T Myathaza, a representative of Masimanyane Women’s Support Centre; 4.3 Ms K Maema, Chief Executive Officer, Commission for Gender Equality; 4.4 Ms J Hicks, Commissioner, Commission for Gender Equality; 4.5 Mr J Skosana, Deputy Chief State Law Advisor, Department of Justice and Constitutional Development; and 4.6 Mr M Jojo, Legal Administration Officer, South African Police Service, Western Cape Province.
5.

SUBMISSIONS BY EMBRACE DIGNITY 5.1 Submissions by Mr J Routledge In his brief submissions to the Committee, Mr J Routledge (Mr Routledge) introduced himself as the Director of Strategy for Embrace Dignity, an NGO with a mission to challenge gendered power inequalities that persist in our society and which oppress women and girls through prostitution, sexual exploitation and sexual abuse.
Mr Routledge further explained that after Embrace Dignity submitted the petition to the NCOP in December 2014, it was called to appear before the Committee towards the end of 2015 however the hearing on the petition was postponed due to the industrial action that was taking place at Parliament.
He also informed the Committee that the organisation submitted the petition to Parliament in the hopes that the oppression of women and girls through prostitution, sexual exploitation and sexual abuse would receive the urgent and necessary attention that it warranted.
Mr Routledge further elucidated that the intervention that Embrace Dignity sought from Parliament, is for Parliament to establish a Joint Committee from both houses of Parliament to investigate matters relating to the situation of women and girls in forced or coerced prostitution and sex trafficking.
He pointed out that such an investigation will not only enable politicians to get a better ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 186 [Tuesday, 8 May 2018 understanding of the situation of women and girls in this regard but will also allow them to take the views of the varying stakeholders into account.
Mr Routledge also informed the Committee that such Joint Committee should ideally also include representatives from the relevant Departments, namely; the Departments of Justice, Health, Social Development and Labour.
In his submissions, Mr Routledge informed the Committee that the South African Law Reform Commission (SALRC) had submitted a report (SALRC Report) to the Minister of Justice and Constitutional Development (Minister) in relation to the issues of prostitution and sex trafficking but the Minister had yet to release or publicise the SALRC Report.
In concluding his submissions, Mr Routledge requested the Committee to permit Ms G Grootboom, Ms Mentor and Ms Myataza to also make submissions in support of the petition.

5.2 Submissions by Ms G Grootboom Ms Grootboom began her submissions by informing the Committee that although she came from a normal home she ended up living in a shelter after her mother chased her away from home at the age of 9 years.
She further informed the Committee that she was also sexually abused and gang raped in her early years and later trafficked by her best friend at the age of 18 years and it was during this period that she developed a drug habit which had made it difficult for her to exit the world of prostitution.

Ms Grootboom also submitted that once she was able exit the world of prostitution, she enrolled in a drug rehabilitation programme.
However, after successfully completing the drug rehabilitation programme and exiting the world of prostitution, she had nowhere to go and nothing to do and as such, she had to find her own means of survival.
She further informed the Committee that after completing the drug programme and ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 187 exiting the world of prostitution, she also battled (and continues to battle) with getting acceptance from her community and getting her community to understand that she is no longer a prostitute.
Ms Grootboom further submitted that her current employment with Embrace Dignity allows her to speak to the issues relating to human trafficking and forced prostitution with other young people in a bid to raise awareness around the issues.

Further, according to Ms Grootboom, and contrary to popular belief, the decision to become a prostitute is not a “free choice” and experience has taught her that certain factors play a definitive role in compelling women and girls to enter a life of prostitution.
Drivers such as socio-economic circumstances, more often than not, lead women into prostitution as they have little or no hope of becoming economically empowered through other means.
Ms Grootboom concluded her submissions by requesting the Committee to call on Government to intervene and assist victims of sex trafficking and prostitution because not every girl on the streets wants to be or remain on the streets, but is compelled by socio-economic circumstances to use her body to earn money and remain on the streets.
5.3 Submissions by Ms S Mentor In her brief submissions to the Committee, Ms S Mentor (Ms Mentor), a representative of Embrace Dignity, impressed upon the need for Government to address the integration of survivors of prostitution and sex trafficking back into society and to actively assist those who are forced into prostitution and trafficked by offering them holistic support services.
She further informed the Committee that there is also an urgent need for systems to be in place for those who wish to exit prostitution.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 188 [Tuesday, 8 May 2018 5.4 Submissions by Ms T Myataza Ms T Myataza (Ms Myataza), introduced herself as a counsellor and a representative of Masimanyane Women’s Support Centre (Masimanyane), a non-profit international women’s organisations based in East London, with a specific focus on gender-based violence and on the provision of services to survivors of coerced prostitution and trafficking.
She further informed the Committee that in the course of her work with the organisation, she repeatedly encounters women who have been sexually trafficked to the Eastern Cape from other provinces or countries and women who have been sexually trafficked from the Eastern Cape to other provinces or countries.

Ms Myataza also emphasised that prostitution violated the constitutional rights of the women and girls involved in it.
In this regard, she informed the Committee that prostitution has a negative impact on women because it is not only harmful to their bodies but is also harmful to their minds and overall wellbeing.

Ms Myataza further informed the Committee that prostitution also has a negative impact on the health of the women because, at times, it exposes the women engaged in it to great levels of physical and sexual violence.
Further according to Ms Myataza, prostitution also violates the rights to liberty and security of the women and girls involved in it because many of them have either been trafficked or forced into a life of prostitution in order to meet the demand for sex.
Ms Myataza further explained that prostitution impacts negatively not just on the women and girls engaged in it, but also on all women as a group because it persistently affirms and reinforces patriarchal definitions of women as having the primary function of serving men sexually.

And it is for this reason that Masimanyane views prostitution as one of the cornerstones of patriarchal control and the sexual subjugation of women.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 189 In concluding her submissions, Ms Myataza, informed the Committee that even though Masimanyane recognises the fact that prostitution is a highly contested issue, the present law is doing very little to alleviate the challenges experienced by women and girls engaged in prostitution.
And Masimanyane, takes the view that just as the world could imagine a world without slavery and a world without apartheid and made the existence of such a world a reality, it has a duty to not only imagine but also work towards a world without prostitution.

6.
6.

SUBMISSIONS BY THE COMMISSION FOR GENDER EQUALITY 6.1 Submissions by Ms K Maema Ms K Meama (Ms Maema), the Chief Executive Officer of the Commission for Gender and Equality (CGE) began the submissions on behalf of the CGE by explaining that one of the mandates of the CGE is to receive and investigate complaints relating to gender discrimination.
She further informed the Committee that the CGE has received numerous complaints from sex workers in relation to the manner in which they are treated by members of the South African Police Service (SAPS), health workers and social workers and as a result the CGE has resolved to investigate these complaints.

Ms Maema indicated that the CGE will ensure that it presents its findings, advice and recommendations in this regard to Parliament.
Ms Maema then informed the Committee that she would allow Ms J Hicks (Ms Hick), a commissioner with the CGE, to make extensive oral submissions on behalf of the CGE in relation to the petition.

6.2 Submissions by Ms J Hicks In her submissions to the Committee, Ms J Hicks (Ms Hicks) attempted to clarify the concepts of forced prostitution, sex work and sex trafficking.
Forced prostitution, according to Ms Hicks, occurs where a ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 190 [Tuesday, 8 May 2018 person is coerced into becoming a prostitute and is given little or no choice in the matter.

And it therefore makes sense that such a person should be considered victim of prostitution or sex trafficking.
She further submitted that trafficking a person for sex or any other purpose is a criminal act and legislation (namely the Prevention and Combating of Trafficking in Persons Act 7 of 2013 (Trafficking in Persons Act), criminalising the trafficking of persons has come into force and effect in our country.

She further explained that the concept of sex work is a non- stigmatising term coined by sex workers to redefine commercial and consensual sexual acts between adults.
She further submitted that the concept suggests an element of agency and the right to self- determination and as such it should not be confused with trafficking and forced prostitution.

Also in her submissions, Ms Hicks raised concerns around the adequacy of Government’s response to the issues of prostitution and sex trafficking.
In this regard, she submitted that despite the enactment of legislation such as the Sexual Offences and Related Matters (Amendment Act) Act 32 of 2007 and Trafficking in Persons Act, there is insufficient information or evidence on the extent to which forced prostitution and sex trafficking takes place as well as on the effectiveness of SAPS and other Government Departments in implementing the relevant legislation.
She also submitted that the CGE is also concerned with the high levels of human rights abuses reported by sex workers against, amongst others, polices officials, health workers and social workers.

She further reiterated that the CGE is currently investigating numerous complaints in this regard.
Ms Hicks also submitted that the CGE is in support of the following aspects of the petition submitted by Embrace Dignity: 6.2.1 The call for a Joint Committee to be established for purposes of investigating the issues of prostitution and sex trafficking; ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 191 6.2.2 The call for the SALRC Report on prostitution and sex trafficking to be released and published; and 6.2.3 The call for urgent law reform in relation to prostitution.
She further added that CGE is of the view that consensual, adult sex work should be decriminalised as this is the only viable legal option to promote and protect the human rights of sex workers.
She also submitted that the investigation by the Joint Committee should also focus on the following: the evidence and information on the extent of forced prostitution in the country; the factors that enable forced prostitution (such as social and economic factors); the extent to which SAPS and other Government departments have been implementing the relevant legislation; the support measures in place for persons who wish to exit forced prostitution; the allegations of human rights abuse levelled by sex workers against, amongst others, the police, health care workers and social workers; and listening to the voice of sex workers.
Ms Hicks further submitted that unlike Embrace Dignity, the CGE is of the view that because the SALRC Report includes an investigation into the available legal options, the request by Embrace Dignity for such an investigation will constitute a duplication of the work already done by the SALRC.

In concluding her submissions, Ms Hicks requested the intervention of the Committee in ensuring the Minister of Justice and Constitutional Development expedited the release of the SALRC Report.
She further informed the Committee that the CGE supported the global call for the decriminalisation of sex work and emphasised that this call had also been made by international organisations such as UNAIDS, the World Health Organisation, the United Nations Committee on the Convention on the Elimination of All Forms of Discrimination Against Women, the United Nations Rapporteur on Health and Amnesty International.
Ms Hicks further noted that the CGE supported the call for decriminalisation of sex work as it took the position that decriminalisation would lift stigma associated with sex work and allow for access to rights by persons involved in sex work.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 192 [Tuesday, 8 May 2018 7.
SUBMISSIONS BY THE DEPARTMENT OF JUSTICE AND CONSTITUTIONAL DEVELOPMENT In his submissions to the Committee, Mr J Skosana (Mr Skosana), a Deputy State Law Adviser in the Department of Justice and Constitutional Development (Department), submitted that the Minister had tabled the SALRC Report before the Justice, Crime Prevention Security Cluster Cabinet Committee (JCPS Committee) towards the end of 2015.
He further informed the Committee that the tabling of the SALRC Report in this regard allows Cabinet to consider it through the relevant Government clusters.

Mr Skosana further informed the Committee that whereas the role of the SALRC is to examine the issues of law reform, the role of Cabinet, on the other hand, is to identify legislation, policy and programmes for implementation and it is for this reason, that the Minister has tabled the SALRC Report with the JCPS Committee.
He also submitted that because the SALRC Report raises some contentious issues, implicates various sectors of society, raises legal and non-legal issues, and contains different views and paradigms, the Minister is obligated to ensure that all the affected Government clusters are consulted before the SALRC Report is released.

As such the JCPS Committee will also need to submit the SALRC Report to other Government clusters to enable them to determine if it has any implications for them.
Also in his submissions, Mr Skosana, submitted that Government also needs to ensure that appropriate support mechanisms are in place prior to the release of the SALRC Report.

He further stated that given the SALRC Report has implications on the fiscus of the country, Government would need to be given time to look into what other mechanisms it can canvas in responding to and finding solutions to the issues raised in the SALRC Report.
In concluding his submissions to the Committee, Mr Skosana clarified that it had been less than 2 years since the Minister had received the SALRC Report.

He also observed that Cabinet sits on a bi-monthly basis and this means by April 2016, the JCPS Committee should be in a position to brief the Committee on the progress made in relation to the release of the SALRC Report.
ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 193 Mr Skosana concluded his submissions by informing the Committee that should it accede to the request by Embrace Dignity and the CGE for Parliament to set up a Joint Committee for purposes of investigating the issues raised in the petition, this will invariably be a duplication of the work already done by SALRC and a waste of state resources.
He however also added that Parliament would be well within its mandate to establish a Joint Committee and the Department of Justice and Constitutional Development is prepared to cooperate with whatever recommendations the Committee comes up with following the hearing on the petition.

8.

SUBMISSIONS BY THE SOUTH AFRICAN POLICE SERVICES Mr M Jojo made submissions on behalf of the South African Police Services (SAPS), Western Cape Province.
In his brief submissions to the Committee, Mr Jojo introduced himself as a legal administrator at SAPS.

He further indicated he was attending the hearing on the orders of the Office of the Provincial Commissioner, Western Cape Province.

Mr Jojo also informed the Committee that he was aware of the issues raised in the petition because SAPS is working with SWEAT in an effort to address some of the issues.
He also clarified that the issues raised in the petition and the various submissions made during the hearing, fell outside the competence of the Provincial Commissioner and fell within the competence of the National Commissioner.

He further informed the Committee that, notwithstanding this, he will compile a report on the submissions made during the hearing so as to enable the Provincial Commissioner to table the report with the National Commissioner.

9.
9.

OBSERVATIONS AND KEY FINDINGS The Committee made the following observations and findings in relation to the various submissions on the petition: ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 194 [Tuesday, 8 May 2018 9.1 The CGE is currently investigating the allegations of human rights abuses that have been levelled against SAPS, health care workers and social workers by sex workers.
9.2 There is presently a need for legal reform around the issues raised in the petition as the existing legislative framework, which includes legislation such as the Sexual Offences Act and the Trafficking in Persons Act, is inadequate for addressing the issues raised in the petition.

9.3 The CGE has developed and tabled its position on the issues raised in the petition before the Portfolio Committee on Women in the Presidency.
9.4 The Joint Committee that the petition proposes Parliament establish will also involve multi-stakeholders and will be broad in its mandate.

The Joint Committee will look into, inter alia, the factors enabling forced prostitution (such as social and economic factors); the extent to which SAPS and other Government departments have been implementing the relevant legislation; and the support measures in place for persons who wish to exit forced prostitution.

10.
10.

RECOMMENDATIONS It is against the various submissions made during the hearing on the petition and the study tour the Committee undertook to Sweden, that the Committee recommends to the National Department of Justice and Constitutional Development: 10.1 Study the Committee report on the study tour it undertook to Sweden (attached hereto as Annexure A).
The Committee takes the firm view that there are invaluable lessons to be learnt from the Swedish approach to the issues of prostitution and trafficking.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018 Tuesday, 8 May 2018] 195 10.2 Initiate and drive a consultative and investigative process aimed at reviewing the current policy position on the issues of prostitution and trafficking and proposing an approach or response that is specific or peculiar to the country’s prevailing circumstances.
10.3 Appear before the Committee and report on the outcomes of the process referred to in 10.2. above as well as propose a way forward in relation to the best legislative response or approach to the issues of trafficking and prostitution for the country.

The Select Committee on Petitions and Executive Undertakings recommends as follows: That the House adopt the Embrace Dignity Petition report, as tabled by the Committee, together with Annexure A of the report (i.e.
the report on the Committee’s study tour to Stockhom, Sweden).

Report to be considered 3.

Report of the Select Committee on Economic and Business Development on Budget Vote 31: Small Business Development Strategic Plan and Annual Performance Plan 2018/2019 of the Department of Small Business Development, dated 02 May 2018.
The Select Committee on Economic and Business Development, having considered Budget Vote 31: Small Business Development Strategic Plan and the Annual Performance Plan 2018/2019 of the Department of Small Business Development, reports that it has concluded its deliberations thereon.

Report to be considered ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS NO 56─2018